ICEA-Lion Reit profit dips 16pc

Kenya banknotes.

Listed property fund ILAM Fahari I-REIT posted a 16 per cent fall in profit for the year ended December 2020, attributed to the revaluation of property on a year hammered by the Covid-19 pandemic.

This saw its net profit stand at Sh148 million compared to Sh175.2 million recorded the previous year. The firm’s distributable earnings reduced to 74 cents per unit to Unit holders, compared to 80 cents per unit in December 2019.

“The real estate market was hard hit by Covid-19 pandemic with most tenants, especially in the retail sector, facing the biggest challenges. The year 2020 was particularly challenging for ILAM Fahari I-REIT due to the financial difficulties experienced by struggling retailer Tuskys, which was the anchor tenant at Greenspan Mall,” said ICEA Lion Asset Management Chief Einstein Kihanda.

“The resultant closure affected business for the other tenants as a result of reduced foot traffic. We expect that 2021 will be a better year after the replacement of the anchor tenant at the mall.”

The ILAM Fahari I-REIT (formerly Stanlib Fahari I-REIT) is the first and only listed real estate investment trust in East Africa. It was taken over last year by ICEA LION Asset Management from Stanlib.