Eight TASI Stocks Hit 52-Week Lows; REITs Cluster

Eight TASI-listed companies touched their lowest levels in 52 weeks on May 20, data compiled by Argaam showed. The list spans real estate, insurance, and brokerage, with five of the eight concentrated in the REIT and insurance sectors.

• Al Rajhi REIT
• Alinma Retail REIT
• Aljazira Takaful Taawuni
• Al Sagr Cooperative Insurance
• Buruj Cooperative Insurance
• Alistithmar for Financial Securities and Brokerage Company
• Alkhabeer REIT
• Al-Mashaar REIT

REITs Bear the Weight of Higher Rates

Four of the eight names are REITs: Al Rajhi REIT, Alinma Retail REIT, Alkhabeer REIT, and Al-Mashaar REIT. Their simultaneous drop to 52-week lows points to a common macro trigger: higher-for-longer interest rates.

Saudi REITs borrow to acquire properties and pay out most rental income as dividends. When rates rise, acquisition costs climb and the yield on REIT distributions falls relative to risk-free alternatives such as government bonds. Net asset values compress as discount rates used to value property portfolios increase. The simple read is that these REITs are cheap. The better market read is that a SAMA rate cut is the only catalyst that would lift all four at once. Without a policy shift, individual REITs may stay low until asset sales or occupancy improvements reset NAV expectations.

Insurance and Brokerage: Company-Specific Pressure

Three insurers – Aljazira Takaful Taawuni, Al Sagr Cooperative Insurance, and Buruj Cooperative Insurance – also hit lows. The sector faces a squeeze between competitive premium pricing and rising claims costs. A macro rate move does little to fix an insurer's combined ratio. The next catalyst for these names is the Q2 2025 earnings season, when underwriting discipline and loss ratios will show whether margins are stabilising or deteriorating.