Acorn Investment Management Ltd (AIML), the entity behind Qwetu and Qejani Student Residences, has posted a KSh1.16 billion net profit for its Real Estate Investments Trusts (REITS) for the year ended 31st December 2021.
The Acorn Student Accommodation Development REIT (ASA D-REIT) posted a net profit of KSh776 million while the Acorn Student Accommodation Income REIT (ASA I-REIT) posted a KSh387 million during the review period.
Nevertheless, in line with the investment plan, the ASA D-REIT is not expected to pay out dividends until 2024 when it ramps up the sale of investment properties to the ASA I-REIT.
The significant progress made has seen a growth in the ASA D-REIT Net Asset Value (“NAV”) from KSh4.21 billion at launch in February 2021 to KSh 5.23 billion as at 31st December 2021, denoting an 24.4% increase in NAV with the value per unit appreciating from KSh20 per unit at launch to KSh23.84 per unit at the end of 2021.
The average occupancy for the three ASA I-REIT properties for 2021 was 91% against a target of 70% in the investment plan, resulting in a net operating income of KSh229 million against a target of KSh187 million. This net operating income together with valuation gains enabled the ASA I-REIT to record a Net Profit of KSh387 million in 2021.
Thus, the REIT Manager and Trustee have approved the payment of a final dividend of KSh106 million, equating to KSh0.64 per unit. This, together with the interim dividend of KSh63 million declared in July 2021 (KSh0.38 per unit), has resulted in a full year dividend of KSh169 million or KSh1.02 per unit. The dividend yield equates to 5.4% and represents a pay-out ratio of 93%, which is 13% more than the regulatory requirement of 80%.
On the back of the strong performance, the ASA I-REIT has grown its Net Asset Value (NAV) from KSh3.3 billion at launch in February 2021 to KSh3.5 billion as at 31st December 2021, which translates to a 4% increase in NAV.
The Acorn Student Accommodation D-REIT and I-REIT were launched on February 8th, 2021 and are listed and trade on the Unquoted Securities Portal of the Nairobi Securities Exchange.
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