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Aljazira REIT has renewed the lease agreement for Warehouse No. 2 in Block No. 10, also known as the Second Compound, extending the tenancy for another three years. The renewed contract carries an annual rental value of SAR 1.4 million, excluding VAT. The renewal reflects the REIT's continued focus on maintaining occupancy across its income-generating assets and ensuring stable rental income from its logistics and industrial property portfolio. Warehouse assets have remained an important segment for REITs amid sustained demand for storage and distribution facilities.
Aljazira REIT has renewed the lease agreement for Warehouse No. 2 in Block No. 10, known as the Second Compound, for a period of three years, according to a company filing.
Under the renewed agreement, the warehouse will generate an annual rental income of SAR 1.4 million, excluding VAT. The company did not disclose the identity of the tenant or mention any changes to the lease terms apart from the renewal period and rental value.
The renewal ensures the continued occupancy of one of the REIT's warehouse assets and supports recurring rental income from its real estate portfolio. Lease renewals form an important part of a REIT's asset management strategy, helping maintain occupancy levels and provide stable cash flows for investors.
Aljazira REIT owns and manages a diversified portfolio of income-generating real estate assets across different sectors. Industrial and logistics properties, including warehouses, have continued to attract demand in Saudi Arabia, supported by the country's expanding logistics sector, growing e-commerce activity and ongoing infrastructure development under Vision 2030. These trends have encouraged property owners and REITs to retain long-term tenants through lease renewals where possible.
The latest renewal follows Aljazira REIT's ongoing efforts to optimise the performance of its property portfolio by securing long-term occupancy and maintaining a steady rental income stream from its leased assets.
Source Reuters
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