Acorn Investment Management Limited (AIML) has announced the financial results for the year ended 31st December 2024 for the Acorn Student Accommodation Development REIT (ASA D-REIT) and Income REIT (ASA I-REIT). The two REITs recorded a year of strong performance, posting a net profit of Ksh1.4 billion from Ksh467 million in 2023, representing a close to 200% growth driven by a rebound in the ASA D-REIT’s profitability.
Despite operating in a tough business environment, the ASA REITs have continued to demonstrate resiliency, underscoring the strength of their underlying assets and the robustness of the business strategy.
Mr Mathew Maina, Executive Director, Acorn Investment Management Limited, said despite macroeconomic headwinds, the ASA REITs continue to perform well due to strong underlying fundamentals. “We are now focused on optimizing debt costs – especially in the I-REIT, mitigating macro-economic pressures, and expanding into other university towns in Kenya as part of our medium-term growth strategy.”
Acorn’s combined portfolio of operating and development-stage student beds now stands at 21,000, reinforcing its position as Africa’s largest Purpose-Built Accommodation provider. Total Assets Under Management (AUM) across the two REITs grew by Ksh5.6 billion, reaching Ksh26.4 billion, up from Ksh20.6 billion in 2023, demonstrating sustained growth and investor confidence.
> High Court Landmark Ruling to Affect Property Developers
The ASA I-REIT continued its growth trajectory, surpassing Ksh1 billion in annual rental revenue for the first time since inception, supported by high occupancy levels and new acquisitions. With plans to double its operating bed capacity by the end of 2026, the ASA I-REIT is well-positioned for sustained expansion and increased rental income.
Despite elevated interest rates in 2024, the ASA I-REIT continued its distribution track record, declaring a total payout of Ksh224 million for the year. The final distribution marks the eighth consecutive payout since launch four years ago, reinforcing its continued ability to delivering consistent distributions to investors.
During the year, the I-REIT expanded its portfolio with the acquisition of Qwetu Aberdare Heights II, a 627-bed property valued at Ksh1.5 billion, increasing total AUM to Ksh11 billion. The REIT’s portfolio now comprises seven green-certified properties.
A key priority for 2025 is reducing the cost of debt to enhance investor returns. This will be achieved by refinancing high-cost debt with a combination of equity and more affordable, long-term facilities that preserve equity value and improve overall yield for investors.
Development Pipeline Expansion
The ASA D-REIT experienced a strong rebound in 2024, driven by the completion of its first fully originated assets, significantly enhancing portfolio value. As a result, operating profit improved to Ksh1.5 billion from Ksh728 million in 2023, while net profit for the period rose more than 10 – fold to Ksh840 million, up from Ksh71 million in 2023.
The REIT declared and paid its second consecutive distribution of Ksh293 million in December 2024 up from Ksh240 million in 2023. Additionally, the net asset value (NAV) per unit increased to Ksh26.68, compared to Ksh24.54 at the end of 2023.
> Kenyan Insurance Company Retreating From Tanzanian Market
The ASA D-REIT also expanded its pipeline, acquiring a prime site in Eldoret CBD that will add 2,100 beds bringing total AUM to Ksh15.4 billion, up from Ksh11.5 billion in 2023.
Together, the ASA I-REIT and ASA D-REIT continue to shape Kenya’s student housing sector, delivering stable and predictable returns for investors. Their ability to scale efficiently, sustain high occupancy rates, and develop premium, sustainable properties underscore Acorn’s market leadership in the PBSA sector.
Leave a comment