Acorn Investment Management Limited’s development and investment in real estate investment trusts (Reits) have posted a near-triple net profit of Sh1.4 billion in the financial year ended December 2024.
This marks a rise from the Sh467 million net profit in the previous year and came on the back of improved performance by Acorn Student Accommodation’s development Reit (ASA D-Reit) and income Reit (ASA I-Reit).
Acorn’s combined portfolio of operating and development-stage student beds now stands at 21,000. Total assets under management across the two Reits hit Sh26.4 billion, up from Sh20.6 billion the previous year.
The I-Reit surpassed Sh1 billion in annual rental revenue supported by high occupancy levels and new acquisitions.
The I-Reit has declared a total payout of Sh224 million for the year.
The latest distribution marks the eighth consecutive payout since launch four years ago. During the year, the I-Reit expanded its portfolio with the acquisition of Qwetu Aberdare Heights II, a 627-bed property valued at Sh1.5 billion.
The firm’s plan for the I-Reit this year is to refinance the high-cost debt with a combination of equity and more affordable, long-term facilities.
The review period saw the D-Reit experience growth, driven by the completion of its first fully originated assets. As a result, net profit for the period rose more than 10-fold to Sh840 million, up from Sh71 million.
The D-Reit declared and paid its second consecutive distribution of Sh293 million in December 2024 up from Sh240 million in 2023.
During the review period, the net asset value per unit increased to Sh26.68, compared to Sh24.54 a year earlier.
The D-Rit also expanded its pipeline, acquiring a prime site in Eldoret that will add 2,100 beds, bringing total assets under management to Sh15.4 billion, up from KES 11.5 billion in 2023.
“We are now focused on optimizing debt costs – especially in the I-Reit, mitigating macroeconomic pressures, and expanding into other university towns in Kenya as part of our medium-term growth strategy,” said Mathew Maina, executive director, Acorn Investment Management Limited.
"Sustained profitability and strong investor returns will be our top priorities as we scale our PBSA portfolio to meet the growing demand.”
