ICEAO Lion Asset Management(ILAM) Fahari I-REIT Manager and Trustee has informed Unit holders of the REIT, potential investors and the general public that based on the projected assessment of its projected unaudited financial results for the year ended 31st December 2021, net earnings will be at least 25% lower than that reported in year ended 31st December 2020.
ILAM Fahari I-REIT said that it expects lower than prior year earnings are mainly attributable to the revaluation losses reported by the REIT properties against the backdrop of the COVID-19 pandemic whose impact continues to be a material valuation uncertainty in the short and medium term.
” In addition, there was loss of revenue from the anchor tenant at Greenspan Mall for a period of 7 months during the year ender review, ” said the firm in a statement.
The REIT Manager on-boarded Naivas Limited as the replacement anchor tenant with rental income accruing from August 2021. The ILAM REIT Manager expects that once Naivas opens their store in early 2022 and with continued relaxation of COVID-19 restrictions, the footfall at the mall will increase, resulting in better performance.