Acorn reports Sh457 million half-year profit

Acorn Investment Management Ltd (AIML) has reported a profit growth of 32 per cent to Sh457 million for the half year ended June 30, 2025.

AIML is the Reit (Real Estate Investment Trusts) Manager of the Acorn Student Accommodation Development Reit (ASA D-Reit) and the Acorn Student Accommodation Income Reit (ASA I-Reit) - the entity behind the Qwetu and Qejani student accommodation.

ASA D-Reit is the developer of the projects, while ASA I-Reit buys the completed projects and manages them.

The financials presented by AIML show that the ASA I-Reit net income rose to Sh251 million during the period compared to Sh164 million in the same period last year.

This growth is driven by a gain in value of investment properties as a result of rent increases and operational efficiencies.

It adds that the ASA I-Reit has prioritised a reduction in both the quantum and cost of local bank debt for 2025.

“In July 2025, the Reit successfully reduced its total debt from Sh2.5 billion to Sh1.9 billion and lowered its weighted interest rate from 17 per cent recorded at the end of 2024 to 11.1 per cent in July 2025. The resultant savings are expected to reflect in the full year results,” the statement says.

The statement noted that despite macroeconomic headwinds, the ASA I-Reit remains committed to delivering consistent returns to investors.

“Demonstrating this commitment, the Reit has declared its 9th consecutive half-year distribution since inception in 2021 of Sh0.29 per unit,” the statement says.

Executive Director for AIML Mathew Maina said since its inception in 2021, the ASA Reits have continued to demonstrate sustained growth and return despite the significant volatility in the market environment over this period.

“In 2024, the ASA D-Reit achieved a total return of 13 per cent and the ASA I-Reit seven per cent. Based on the 2025 half-year results, the Reits remain on course to deliver improved returns in 2025, driven by debt optimisation, keeping projects on plan and increasing occupancy across the portfolio,” he said.

In the period, ASA D-Reit recorded a net income of Sh205 million compared to Sh181 million in the same period in 2024.

“(This was) driven by gains in value of investments such as Qejani at Hurlingham, Qwetu and Qejani at Kenyatta University and Qejani at Jomo Kenyatta University of Agriculture and Technology, which were completed on time and budget and are now operational,” the statement says.