Property developer Acorn Holdings’ development and investment real estate investment trusts (I-Reits) posted a combined 9.4 percent growth in net earnings to Sh1.52 billion in the year to December 2025.
The Acorn I-Reit recorded a net profit of Sh670.16 million in the period, up from Sh555.61 million in 2024, while the D-Reit made a net profit of Sh854.2 million, up from Sh839.9 million previously.
Overall profit growth was, however, affected by an increase in finance costs on the D-Reit from Sh312.82 million to Sh865 million, while the cost on the I-Reit fell to Sh304.9 million, from Sh416.9 million in 2024.
The Acorn D-Reit puts up student hostels near various universities using borrowed funds, and uses the proceeds of their sale to settle the obligations.
The I-Reit, meanwhile, absorbs the hostels—which are held under the Qwetu and Qejani brands—from the development arm once they are completed, thereafter generating income from rent and utilities that are then distributed as dividends to Reit holders.
For the I-Reit, lower financing costs freed up more funds for distribution to unit holders, as well as building the kitty for the purchase of completed properties from the Acorn student accommodation Development Reit.
In the year to December 2025, the I-Reit raised its total dividend to Sh310 million, equivalent to Sh0.86 per unit, compared to Sh224.7 million in 2024.
The I-Reit had paid an interim dividend of Sh102 million earlier last year, with the final payout of Sh208 million set to be paid in coming weeks to unitholders who were on register as at December 31, 2025.
The D-Reit is not making a distribution for the 2025 financial year, having issued a dividend of Sh293 million in 2024.
“While no new acquisitions were undertaken by the I-Reit in 2025, the existing portfolio continued to deliver steady performance especially in its core stabilised assets, which together with the reduction in the cost of debt underpins the improved profitability,” said Acorn.
“The D-Reit has faced a challenging fundraising environment over the past three years, as investors shifted capital allocation into government securities. In response, the Reit has moved from a growth strategy to consolidation, focusing on the sale of stabilised assets.”
Acorn’s combined portfolio of operating and development-stage student accommodation beds now stands just under 21,000, and the total assets under management across the two Reits grew by 11 percent to Sh29.3 billion in 2025.
Compared to equities and bonds, the income tax-exempt Reits are a relatively new investment class in the Kenyan capital markets, having had a maiden issuance in October 2015 through the Fahari Investment Reit, which is now managed by ICEA Lion Asset Management.
In addition to the Acorn Reits, others issued in the market recently include the Laptrust Imara I-Reit and the dollar-denominated ALP Industrial Reit, which was listed on the Nairobi Securities Exchange on March 11.
The Laptrust Imara I-Reit is listed on the NSE’s main market segment, while the Acorn and Fahari Reits are listed on the NSE’s unquoted securities platform—a formal Over-The-Counter (OTC) market which allows for trading of unlisted firms or securities.
