First National Real Estate and Hospitality Fund Plc (“Real Estate Fund”) has announced its dividend and distributions to bondholders for the first quarter of 2025, declaring a total distribution of MVR 545,297.04, comprising MVR 226,441 for Class B equity holders and MVR 318,856.04 for bondholders.
The first quarter payments reflect the results of operations from Feb-March, resulting in MVR 22.87 per share. The bonds are issued at an interest rate of 12%, amortised over 6 years.
Real Estate Fund is a CMDA-approved fund investing in Real Estate and Hospitality assets, offering both equity and debt investment options to cater to a diverse group of investors. The Real Estate Fund was launched in December 2024 and attained full subscription by raising MVR 18 million from 126 investors. The fund aims to strategically invest in valuable assets within the real estate and hospitality sectors to ensure attractive and sustainable returns for its investors.
The Real Estate Fund has also appointed its first Board of Directors. Three distinguished professionals, Dr. Ibrahim Mahfooz and Ahmed Hassan Didi representing Class B shareholders and Ahmed Nasir as Independent Director are amongst the newly appointed Board members. In addition to the approval of the proposed dividends, the Board resolved to establish an Asset Replacement Reserve. It made recommendations to implement measures to ensure the future viability of the property. These two critical decisions of the board are essential to meet the dividend expectations of equity investors and obligations towards debt holders.
The Fund Manager expressed optimism about the strength of the rental market, highlighting the fund’s ability to maintain similar dividends throughout the year and effectively serve its debt holders. Additionally, a dedicated trading platform will be rolled out this year, aimed at enhancing liquidity for investors and accessibility.
Looking ahead, the Real Estate Fund remains optimistic about its returns and is committed to expanding its investment portfolio, aiming to generate enhanced returns and create sustainable long-term value for its investors. The announcement of next quarter’s dividend is expected in July 2025.
