Announcement by Alinma Investment Company regarding a material development of Alinma Retail REIT Fund

25 Dhuʻl-Qiʻdah 1444 AH H - 14 June 2023 G

Introduction:

Announcement by Alinma Investment Company regarding adding a cap on Fund management fees of Alinma Retail REIT Fund.

Description of the Event:

With the aim of creating better alignment of interest, Alinma Investment Company would like to inform you that the fund manager has decided to add a maximum limit of 12% from the funds from operations to the management fees of the fund while maintaining the percentage of management fees (0.75% of the net assets value of the fund).  This cap will be applied retroactively from the beginning of the fiscal year 2023 AD.

The Impact Caused by the Event:

The fund manager will work on updating the terms and conditions of the fund, to reflect the change in the mechanism for calculating the management fees.  Provided that the addition of the cap of 12% from the funds from operations will start from the beginning 2023 AD, which is expected to have a positive impact on the fund through improving the free cash flows of the fund and raising its ability to make cash distributions to unit holders.