Key ILAM Fahari I-REIT Highlights in 2022;

• February 2022: Naivas supermarket took over Tuskys Supermarket as the anchor tenant at Fahari’s Greenspan Mall, thereby occupying 37% of the mall space, 
• March 2022: Fahari I-REIT released their FY:2021 Results, highlighting that it recorded a loss of Kshs 124.0 mn ($0.9 mn), from a profit of Kshs 148.0 mn ($1.1 mn) realized in FY’2020, and,
• July 2022: Fahari I-REIT restructuring proposal was under review by the Capital Markets Authority of Kenya, according to its fund manager, ICEA Lion Asset Managers.

In March 2023, ILAM Fahari I – REIT released its FY:2022 Results highlighting that the REIT realized an improvement in its basic earnings per unit by 77%, to Kshs (0.16), from Kshs (0.68) recorded in FY:2021. This is mainly attributed to an improvement in the net earnings emanating from an increase in the total operating income (from rent and interest income) by 22.8%, to Kshs 367.8m ($2.7m) in FY ‘2022 from Kshs 299.6m ($ 2.2m) in FY’2021.

 

Breakdown of Portfolio By Value

 

Per the results, the rental income from Fahari’s investment properties came in at Kshs 354.3mn ($2.6mn), which is a 19.1% increase from Kshs 299.6 mn ($2.2mn) recorded in FY ‘2021. The increase was mainly driven by an improvement in occupancy rate at Greenspan Mall through Naivas supermarket, which in turn boosted the overall rental income.

Breakdown Of Portfolio By Sector

In conclusion, we expect Fahari’s performance to stabilize and improve as well, following the fund manager’s restructuring plans awaiting the Capital Markets Authority’s (CMA) approval.  This is in addition to a steady income from its mega property investment, Greenspan Mall, which had Naivas, Kenya’s leading supermarket chain, replace cash strapped Tuskys Supermarket as its anchor tenant. 

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