LAPTRUST Imara I-REIT has issued a profit warning signaling a deterioration in its core income base, warning that earnings for the year ending December 31, 2025 will fall by at least 25% as gross rental revenue weakens.
- • In 2024, rental and related income rose to KSh 479.1 million from KSh 305.2 million in 2023, a 57% increase.
- •Other operating income rose to KSh 100.7 million, lifting total operating income to KSh 579.8 million, up 46% year on year.
- •The warning follows a year in which the REIT delivered strong operating growth but reported a headline loss due to non-cash valuation adjustments.
Operating expenses rose sharply to KSh 296.6 million from KSh 176.4 million the previous year, driven mainly by a doubling of fund operating expenses to KSh 151.4 million and higher utility costs of KSh 80.0 million. Despite the higher cost base, operating profit still increased by 29% to KSh 283.1 million, underlining the strength of rental performance during the year.
Reported results turned negative after a steep fair value loss on investment property with the REIT booking a fair value adjustment loss of KSh 558.2 million in 2024, nearly three times the KSh 187.4 million loss recorded in 2023. Interest income rose to KSh 70.7 million from KSh 25.1 million, but this was insufficient to offset the revaluation impact. The year closed with a loss attributable to unit holders of KSh 204.3 million, compared with a profit of KSh 57.2 million a year earlier. Earnings per unit swung to a loss of KSh 0.59 from earnings of KSh 0.17.
That distinction is central to assessing the latest warning. While the 2024 loss was driven almost entirely by non-cash valuation movements, the December 2025 warning points to weakness in rental income, the line that supports operating profit, distributable income, and future payouts.
LAPTRUST Imara I-REIT is a closed-ended income REIT listed on the Restricted Sub-Segment of the Nairobi Securities Exchange. At listing in March 2023, the REIT issued about 346.2 million units at KSh 20 each, implying an initial valuation of roughly KSh 6.9 billion. Units were structured as restricted, with the sponsor committing to hold the entire issuance for an initial lock-in period, after which trading is limited to eligible investors.
The profit warning did not disclose which properties or segments are driving the revenue decline, nor did it provide updated occupancy levels, tenant turnover data, or lease expiry profiles. Those details will be critical in determining whether the pressure reflects temporary vacancies or a more sustained slowdown.
