Both of Acorn’s student housing REITs’ reported higher net profits, rental income growth, fair value gains, and improved portfolio metrics in the first half of 2025.
ASA D-REIT
Net profit rose to KSh 205 Mn, up 13% from HY 2024. Rental income nearly tripled to KSh 158 Mn, supported by six operational properties. Total operating income grew 90% to KSh 805 Mn, driven by KSh 609 Mn in fair value gains on investment properties.
| Metric | HY 2025 | HY 2024 | % Change |
|---|---|---|---|
| Rental Income | 157.9 Mn | 53.1 Mn | +197% |
| Fair Value Gain – Properties | 609.4 Mn | 341.1 Mn | +79% |
| Total Operating Income | 805.5 Mn | 424.8 Mn | +90% |
| Fund Operating Expenses | 147.7 Mn | 106.3 Mn | +39% |
| Finance Costs | 379.3 Mn | 81.2 Mn | +367% |
| Net Profit (Comprehensive) | 205.0 Mn | 181.4 Mn | +13% |
| Net Asset Value (NAV) | 7.72 Bn | 7.34 Bn | +5.2% |
| NAV per Unit | 27.36 | 25.35 | +7.9% |
| Total Assets | 16.12 Bn | 15.36 Bn | +4.9% |
| Cash & Equivalents | 250.8 Mn | 792.1 Mn | -68.3% |
| Loan-to-Value (LTV) Ratio | 43.4% | 43.0% | +0.4pp |
| Net Cash from Operations | (404.8 Mn) | 368.7 Mn | -210% |
Administrative costs rose to KSh 91 Mn while fund operating expenses increased to KSh 148 Mn. Finance costs surged to KSh 379 Mn due to higher debt drawdowns. Cash and equivalents dropped 68% to KSh 251 Mn.
Total assets stood at KSh 16.12 Bn. NAV rose 5.2% to KSh 7.72 Bn. NAV per unit increased to 27.36. LTV remained stable at 43.4%, below the 60% threshold. Total units increased to 282 million after issuing 6.9 million units through the supplemental offer.
The portfolio included 15 properties, of which 6 are operational. The trust recorded 15,099 beds and an average occupancy of 82%. The target remains 21,000 beds by 2026. New projects in Juja, CBD, Hurlingham, and Eldoret are ongoing. The REIT is also still acquiring land for future projects.
Acorn’s ASA I-REIT
Net profit rose 54% to KSh 252 Mn, while operating profit held steady at KSh 293 Mn. Rental income was flat at KSh 524 Mn, but fair value gains surged to KSh 152 Mn. The REIT’s Finance costs rose slightly to KSh 203 Mn.
| Metric | HY 2025 | HY 2024 / FY 2024 | % Change |
|---|---|---|---|
| Net Profit | 252 Mn | 164 Mn | +54% |
| Total Income | 524 Mn | 535 Mn | -2% |
| Operating Profit | 293 Mn | 291 Mn | +1% |
| Fair Value Gain on Properties | 152 Mn | 49 Mn | +210% |
| Finance Costs | 203 Mn | 195 Mn | +4% |
| NAV | 8.62 Bn | 8.12 Bn (FY) | +6.2% |
| NAV per Unit | 21.02 | 20.69 (Dec 2024) | +1.6% |
| Total Assets | 11.34 Bn | 11.08 Bn | +2.3% |
| Cash & Equivalents | 401 Mn | 87 Mn | +361% |
| Net Cash from Ops | 242 Mn | 317 Mn | -24% |
| Interim Dividend Paid | 126 Mn | 99 Mn | +27% |
| Loan-to-Value (LTV) | 21.3% | 23.9% (FY) | -2.6pp |
NAV rose to KSh 8.62 Bn, up 6.2% from December. NAV per unit rose to 21.02. Cash rose sharply to KSh 401 Mn, up from KSh 87 Mn. Net cash from operations fell 24% to KSh 242 Mn. An interim dividend of KSh 126 Mn was paid, representing a 108.6% payout ratio.
The I-REIT managed 4,403 beds across four properties with a blended occupancy rate of 94%. NOI rose 9.2% to 189 Mn. Qwetu WilsonView and Qwetu Aberdare Heights posted 98% and 97% occupancy, respectively. Operating margins remained above 60% across all assets.
Both of Acorn’s REIT’s are adequately capitalised, with headroom to raise more capital if needed. ASA D-REIT has a KSh 6.7 Bn facility with Absa, of which KSh 2.4 Bn is drawn. It also holds a KSh 1Bn note backed by ASA I-REIT units. ASA I-REIT has a 200 Mn unutilized facility with NCBA.
