Acorn Investment Management Limited (AIML) has posted a 9.2pc profit growth to Ksh 1.5 billion from Ksh 1.4 billion for the twelve months period to December last year.
The the student accommodation developer says the profit growth was sustained by growth in core assets under the Acorn Student Accommodation Income REIT as well as improved occupancies in newly opened assets in the Acorn Student Accommodation Development REIT (ASA D-REIT).
“Despite prevailing macroeconomic headwinds, the ASA REITs have maintained stable operational performance, supported by good occupancy and continued focus on balance sheet management,” said Mathew Maina, Executive Director AIML.
According to the firm, its combined portfolio of operating and development-stage student accommodation beds now stands at almost 21,000, while total assets across the two investment vehicles surged by 11pc to Ksh 29.3 billion compared to Ksh 26.4 billion reported in 2024.
AIML disclosure shows that ASA D-REIT total comprehensive income of increased to Ksh 854 million from Ksh 839 million reported the previous year 2024 on strong rental income from three new properties. However, profitability was weighed down by increased finance costs which rose by 176.5pc to Ksh 865 million from Ksh 312.8 million.
On the other hand, ASA I-REIT comprehensive income rose by 21pc to Ksh 670 million from Ksh 555 million on lower finance cost.
Overall, the firm saw its total finance cost increase by 60pc to Ksh 1.17 billion from 729.7 billion.
“Current efforts are directed toward, optimizing cost of debt, and improving asset-level performance to strengthen income quality and support improve investor returns,” added Maina.
In a bid to cut finance cost under ASA D-REIT, AIML plans to shift three assets to ASA I-REIT which include Qwetu and Qejani Karen by June this year and Qwetu Chiromo in the second half of this year.
