The Acorn Student Accommodation Development REIT (ASA D-Reit) and the Acorn Student Accommodation Income Reit (ASA I-Reit) have reported a combined 21.4 per cent growth in profit after tax of Sh345 million for the six months to June this year compared to Sh284 million over a similar period last year.
Acorn Holdings, which is one of the largest developers of Purpose-Built Students Accommodation (PBSA) in the region, said it overcame a challenging macro-economic environment to post a strong performance over the period.
“We are delighted to report a strong half-year performance with notable growth in total assets and the net asset values for both the ASA D-Reit and ASA I-Reit. Despite a challenging macro-economic environment locally and globally, this performance underscores the resilience of the PBSA asset class, the prudent asset management approach and a strategic focus on delivering quality student accommodation,” said acting chief executive of Acorn Investment Management Ltd Mathew Maina.
“The interim distribution of Sh0.30 per unit by the ASA I-Reit, which is the seventh straight dividend paid by the Reit, reflects our unwavering commitment to delivering returns to our investors.”
The firm said its ASA I-Reit, which acquires completed and income-generating student hostels, had maintained robust trajectory, driven by rental escalations and high occupancy across its operational assets.
Growth was also driven by the successful new acquisitions of Qwetu Aberdare Heights II in the first quarter of 2024 as well as Qwetu Hurlingham in September last year, resulting in an increase in the total asset value of the ASA I-Reit by 44 per cent to Sh10.6 billion as at June 2024 from Sh7.3 billion in June 2023.
“The I-Reit continues its strong distribution track record by announcing its seventh consecutive distribution payment of Sh0.30 per unit which totals Sh99 million, and which underscores its commitment to delivering consistent and reliable returns to its investors,” said Acorn when it published its half-year results.
It said ASA I-Reit plans to enhance its portfolio with the targeted acquisition of its eighth and ninth assets from ASA D-Reit – which acquires land and develops student accommodation – later this year.
