ILAM Fahari I-REIT released its half-year results for the period ended 30th June 2023, noting that the fund’s net profit remained relatively unchanged at Kshs 86.0 million, compared to a similar period last year. However, the board did not recommend any interim dividend to be distributed for the half-year period.
Read more: KenGen Half Year Earnings Fall To KSh 3.3 Bn
The positive growth in rental and related revenue played a significant role in the results, with a 5.6% increase to Kshs 177.8 million from Kshs 168.4 million recorded on 30th June 2022. This growth was attributed to rent escalations in line with lease agreements. Additionally, the interest income also saw growth, rising by 13.7% to Kshs 16.5 million compared to Kshs 14.5 million during a similar period in 2022.
However, the fund’s overall performance was affected by the increase in operating expenses, which rose by 9.8% to Kshs 110.0 million from Kshs 100.1 million on 30th June 2022. The main contributor to this rise was property expenses, which increased by 11.6% to Kshs 54.0 million from Kshs 48.4 million during the same period last year. The sharp increase in electricity costs, rising by 42.0% during the business operation period, played a significant role in driving up property expenses.
Read more: Tough Times For Kenya Power As It Records A KSh1.1Bn Half Year Loss
As of the reporting date, the total Assets Under Management (AUM) for ILAM Fahari I-REIT stood at Kshs 3.6 billion, comprising Kshs 2.9 billion in Investment Property and Kshs 200.4 million in investment property classified as held for sale.
Read more: Imara I-REIT Lists At NSE After CMA Announced Relaxation Of Rules
Email your news TIPS to editor@thesharpdaily.com
