ILAM Fahari Real Estate Investment Trust (FAHR) unitholders have approved the delisting of the REIT from the main investment market segment of the Nairobi Securities Exchange (NSE) and a proposed operational restructuring.
The decision was made during an Extraordinary General Meeting (EGM) held on November 24. With the aim of providing the company greater flexibility in managing its REIT’s portfolio.
“This special resolution marks a pivotal moment in our journey towards the growth of the REIT,” said Einstein Kihanda, ILAM Chief Executive Officer.
Further adding “The unitholders have reaffirmed their commitment to the Management to pursue the growth and expansion plan. This decision paves the way for strategic acquisitions and a solid financing strategy.”
In a media release the company stressed that the restructuring will not affect the unitholders’ ability to trade their units with Non-Professional investors.
Also adding that upon successful implementation of the strategy the company plans to relist the REIT on the NSE after three years.
“We are pleased that the unitholders have supported our proposed operational restructuring. The restructuring will allow us to serve our unitholders’ long-term interests better and deliver enhanced value. We are thrilled to embark on this restructuring journey to fuel our growth and deliver exceptional returns to our unitholders,” stated Lydia Rono, Chairperson of the Board of Trustees Co-operative Bank of Kenya.
Over the last two years, the ILAM Fahari Real Estate Investment Trust (FAHR) has faced several challenges. In 2020, the REIT posted a 16 percent fall in profit, attributed to the revaluation of property and interruptions from the Covid-19 pandemic.
The net asset value of the REIT also declined by 6.2 percent in 2021 compared to 2020. Despite these challenges, the REIT has seen some positive developments, such as H1 2023 profits of KES 86 million. As of November 2023, the REIT’s shares were trading at 6.56 KES, 21.93 percent above the 52-week low of 5.38 KES set on November 2, 2023.
