Cash distributions by real estate investment trusts (REITs) in the Saudi market during the first half of 2026 revealed a notable disparity in the ability of the funds to convert their real estate assets into cash returns for investors, after the total amount announced by the funds in distributions reached about 380.2 million riyals, according to the funds« financial disclosures.
Although the market includes 20 listed real estate funds, distributions during the period included only 17 funds, while distributions were absent from 3 funds, namely »Mefic REIT«, »Al-Jazira REIT«, and »Al-Istithmar REIT", which adopt an annual distribution policy, making the difference in the distribution frequency an important factor when reading the figures for the first half.
Banyan REIT leads in liquidity and returns
»Bunyan REIT« stood out as having the largest cash distributions among the funds during the first half, after it returned 65.2 million riyals to its unit holders, at a rate of 0.40 riyals per unit, bringing its distributions to 4% of net assets, which is the highest among the funds that announced distributions during the period.
Al Waha REIT recorded distributions of 6.9 million riyals, at a rate of 0.35 riyals per unit, and a ratio of 3.5% of net assets, while Al Maather REIT distributed 20.9 million riyals, at a rate of 0.34 riyals per unit and a ratio of 3.4%.
As for »Al-Inma REIT Hotel,« its distributions amounted to 32.6 million riyals, at a rate of 0.32 riyals per unit, and a ratio of 3.2% of net assets, making it among the highest funds in terms of distribution efficiency during the period.
4 funds acquire 174.1 million riyals
Looking at the value of the liquidity that actually reached investors, a greater degree of concentration appears, as four funds accounted for total distributions of 174.1 million riyals.
»Bunyan REIT« came in first with 65.2 million riyals, followed by »Jadwa REIT Saudi« with 37.3 million riyals, then »Al Rajhi REIT« with 37.2 million riyals, while »Al Ahli REIT« distributed 34.4 million riyals.
Jadwa REIT Saudi Arabia recorded a distribution ratio of 2% of net assets, at a rate of 0.20 riyals per unit, while Al Rajhi REIT's ratio reached 1.35% at a rate of 0.14 riyals per unit, and Al Ahli REIT's ratio reached 2.5% at a rate of 0.25 riyals per unit.
Variance in returns reveals differences in portfolio performance.
The gap widens when moving to funds with lower distributions relative to net assets, as »Al-Azizia REIT" recorded a distribution ratio of 0.7%, at a rate of 0.07 riyals per unit and a total of 4 million riyals.
The ratio in "Malikiyah REIT« reached 0.8%, with a value of 0.08 riyals per unit and total distributions of 8.3 million riyals, while »Al-Khabeer REIT« and »Diraya REIT« recorded a ratio of 1.1%, with distributions of 0.11 riyals and 0.10 riyals per unit respectively.
»Musharaka REIT« recorded a ratio of 1.2%, with distributions amounting to 10.6 million riyals at a rate of 0.12 riyals per unit, while »Taaleem REIT« reached a ratio of 1.8%, with total distributions of 9.2 million riyals at a rate of 0.18 riyals per unit.
More than 200 million riyals outside the top four list
Apart from the four largest funds in terms of distributed liquidity, the rest of the distributions were spread across a wide range of funds.
Jadwa REIT Al Haramain distributed SAR 13.2 million, representing 2% of net assets and SAR 0.20 per unit, while Alinma REIT Retail recorded SAR 21.6 million, representing 1.9% and SAR 0.19 per unit.
Al-Riyadh REIT distributed SAR 27.5 million, at a rate of 1.6% and SAR 0.16 per unit, while SEDCO Capital REIT distributed SAR 25.7 million, at a rate of 1.4% and SAR 0.14 per unit.
As for "Al-Khabeer REIT«, its distributions amounted to 14.8 million riyals, »Diraya REIT« 10.8 million riyals, »Malikiyah REIT« 8.3 million riyals, and »Al-Aziziyah REIT« 4 million riyals.
Periodicity of distribution is a key factor in interpreting results
Cash distributions during the first half cannot be compared in isolation from the policy of each fund, as the frequency of distributions varies among the listed funds.
Some funds adopt semi-annual distribution, including »Bunyan REIT«, »Al Waha REIT«, »Al Maather REIT", "Al Inma REIT Hotel«, and »Al Ahli REIT«, while other funds adopt quarterly distribution, such as »Jadwa REIT Saudi Arabia«, »Sedco Capital REIT«, »Al Rajhi REIT«, »Al Khair REIT«, »Diraya REIT«, and »Malikiyah REIT«.
In contrast, MEFIC REIT, Al Jazeera REIT and Investment REIT rely on annual distribution, and therefore no cash distributions appeared in the results of the first half of the year.
90 % of annual profits is the minimum distribution
The difference in distributions comes within a regulatory framework that requires real estate investment trusts to distribute at least 90% of their annual net profits to unit holders on a periodic basis.
The funds generate these profits by investing in income-generating real estate, including shopping centers, hotels, schools, hospitals, and office assets.
