ILAM Fahari I – REIT has released its H1:2023 results highlighting that the net profits of the REIT remained relatively stable at Kshs 86.0 Mn in the period under review, compared to Kshs 86.2 Mn recorded in H1:2022. Similarly, the basic earnings per unit of REIT remained stable at Kshs 0.48 in H1:2023, as highlighted in the table below:

Interestingly, the rental income from Fahari’s investment properties increased by 5.6% to Kshs 177.8 Mn in H1:2023, from Kshs 168.4 Mn realized in H1:2022. The improvement was mainly driven by rent escalations, in line with lease agreements. On the other hand, property expenses increased to Kshs 54.0 Mn, from Ksh 48.4 Mn realized in H1:2022, owing to increased operating expenses incurred in the period under review.

Breakdown of Fahari’s Investment Property Portfolio By Value

Property Portfolio Description

Property Portfolio Distribution By Sector

Declaration Of Dividends

An interim dividend of Kshs 0.65 per unit was paid in April 2023, with regards to the 2022 fiscal year. However, for the period under review, the board of directors has not recommended any dividends. A full distribution will be declared within four months after the end of this fiscal year.

In conclusion, we maintain our view that Fahari’s performance will remain stable in the short term, and improve in the long term, following ILAM’s restructuring plans aimed at boosting the REIT’s income and property occupancy rates. 

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