ILAM Fahari I-Reit has posted a net profit of KSh42.2 million in the half-year period that ended on 30th June 2021, down from KSh86 million reported in the same period last year. The company attributed the steep drop to a loss of revenue from the anchor tenant at Greenspan Mall after the exit of the troubled Tuskys Supermarket. ILAM’s rental and related income dipped to KSh136.7 million at the end of June this year from KSh174.7 million at the end of June last year.
ILAM Fahari said that it “has now onboarded Naivas Supermarket as the replacement anchor tenant with rental income accruing from the second half of the year”.
The company’s Interest income fell by 10% to KSh11.8 million from KSh13 million in June 2020. Its property expenses grew by 9% as a result of more tenants withholding 10% tax on rent paid. ILAM maintained its fund operating expenses at KSh53 million in the first six months of 2021, the same as the fund operating expenses in the first half of 2020.
As of 30th June 2021, ILAM Fahari had total assets under management worth KSh 3.8 billion comprising investment property valued at KSh 3.5 billion and cash reserves of KSh 315 million.
A REIT manager is required by law to distribute a minimum of 80% of distributable earnings within four months after the end of the financial year. ILAM Fahari paid 60 cents per unit in April, in respect of the 2020 financial year. The company has not recommended an interim distribution for the period ended 30 June 2021.
ILAM Fahari I-Reit is one of three such entities listed on the Nairobi Securities Exchange. According to the company, ILAM Fahari I-Reit owns four properties; a shopping centre, an office building, and two semi-office/ light industrial buildings all valued at KSh3.5 billion and the properties are held through special purpose vehicles.