Acorn announces a Sh457 million profit during the first half of the year
Acorn Student Accommodation Income Reit (ASA I-Reit) Achieves Significant Debt Optimization and Profit Growth
Acorn Student Accommodation Income Reit (ASA I-Reit) has made significant strides in debt optimization and operational efficiency, leading to a reduction in debt and financing costs in 2025.
In July 2025, ASA I-Reit successfully reduced its total debt from KES 2.5 billion to KES 1.9 billion, and lowered its weighted average interest rate from 17% at the end of 2024 to 11.1%. These efforts are expected to result in substantial cost savings, which are anticipated to positively impact the full-year financial results.
Operationally, ASA I-Reit's portfolio, which includes student hostels like Qwetu and Qejani, continues to perform well. Completed projects are now fully operational, contributing to a net income increase to KES 251 million in H1 2025 from KES 164 million in H1 2024, driven in part by gains in property value appreciation.
The Reit has declared its 9th consecutive half-year distribution since inception in 2021, with a distribution of Sh0.29 per unit. In the period, ASA I-Reit delivered a 7% total return, and in 2024, it achieved a total return of 13%.
ASA I-Reit's ongoing operational improvements and debt cost reductions position the REIT to maintain or improve its performance going forward. The Reit remains committed to delivering consistent returns to investors, despite macroeconomic headwinds.
Looking ahead, ASA I-Reit plans to maintain debt efficiency, further operationalize new developments within the student accommodation sector, and sustain attractive returns for investors. This aligns with Acorn's broader strategy of expanding its student housing portfolio while optimizing financial performance to benefit stakeholders.
The success of ASA I-Reit is a testament to its focus on debt optimization and operational efficiency, which has yielded improved profitability and sets a foundation for sustained returns and portfolio growth in the student accommodation sector.
The debts of Acorn Student Accommodation Income Reit (ASA I-Reit) have been optimized, resulting in a reduced total debt of KES 1.9 billion and a lower weighted average interest rate of 11.1%, leading to significant cost savings for future business financials. ASA I-Reit's strategic focus on student real-estate investments, recognizing the value appreciation potential, has contributed to a substantial net income increase for H1 2025, indicating promising opportunities for investing in this sector.
