ALP REIT: Kenya's Newest Real Estate Investment Trust Posts Maiden Profit

• ALP REIT reported a net profit of Sh29.9 million in its maiden interim financial results.
• The real estate investment trust has a portfolio comprising logistics and industrial properties valued at Sh3.45 billion.
• ALP REIT is actively pursuing the acquisition of a fourth property to enhance its portfolio and contribute to growth.

While this reporting period reflects only two months of property income, the portfolio has demonstrated strong occupancy, resilient cash generation and a robust balance sheet.

The Nairobi Securities Exchange (NSE) welcomed ALP REIT as its newest member in March, and the real estate investment trust has since made significant strides. In its maiden interim financial results, ALP REIT reported a net profit of Sh29.9 million, marking a notable achievement for the trust. This milestone is all the more impressive considering that the trust generated this profit within just two months of income-generating operations after transferring assets into the REIT. The strong performance is attributed to the portfolio's underlying operating performance, with Adjusted Funds From Operations (AFFO) standing at Sh59.8 million, excluding one-off establishment and listing expenses.

ALP REIT's portfolio comprises logistics and industrial properties valued at Sh3.45 billion, with a significant portion of its assets being held in cash earmarked for future investments. The trust is actively pursuing the acquisition of a fourth property, which will further enhance its portfolio and contribute to its growth. With a robust balance sheet and a debt-free status, ALP REIT has the flexibility to finance future acquisitions, positioning itself for continued expansion. Management is evaluating funding options to support the expansion of its investment pipeline, underscoring the trust's commitment to disciplined growth.

ALP REIT's compliance with Kenya's REIT regulations is evident in its decision not to recommend an interim distribution for the period. This decision was made due to the limited period of rental income recognized during the reporting window and the ongoing acquisition of a fourth property. However, the trust remains committed to distributing at least 80 percent of its distributable earnings to investors, as required by law. The board's confidence in the REIT's ability to deliver sustainable income and long-term value for unitholders is reflected in their statement, underscoring the trust's commitment to investor satisfaction.

Lawyers advising clients on REIT investments in Kenya should note the requirement for distribution of at least 80% of distributable earnings to investors, as per Kenya's REIT regulations.

Source: Original reporting via Capital FM