Acorn reports 21% rise in net profit

Acon Student Accommodation Development Real Estate Investment Trust (ASA D-Reit) and Acon Student Accommodation Income Real Estate Investment Trust (ASA I-Reit) reported a combined 21.4 per cent rise in profit after tax to Sh345 million in the six months to June this year, compared with Sh284 million in the same period last year.

Acorn Holdings, one of the region’s largest developers of purpose-built student accommodation (PBSA), said it overcame a challenging macroeconomic environment to deliver strong results in the quarter.

“We are pleased to report strong half-year results, with both ASA D-Reit and ASA I-Reit recording significant growth in total assets and net asset value. This performance, despite challenging local and global macroeconomic environments, highlights the resilience of the PBSA asset class, its prudent approach to asset management and its strategic focus on providing quality student accommodation,” said Mathew Maina, acting chief executive officer of Acorn Investment Management Ltd.

“ASA I-Reit’s interim dividend of Sh0.30 per unit is the Reit’s seventh consecutive dividend payment and reflects our unwavering commitment to delivering returns to our investors.”

The company said its ASA I-Reit, which acquires completed and income-generating student accommodation, has been maintaining strong growth momentum, supported by rental growth and high occupancy rates in its operating assets.

The successful acquisition of Qwetu Aberdare Heights II in the first quarter of 2024 and Qwetu Hurlingham in September last year also contributed to the growth, resulting in a 44% increase in ASA I-Reit’s total asset value from Sh7.3 billion in June 2023 to Sh10.6 billion in June 2024.

“I-Reit continues its strong distribution performance with the declaration of its seventh consecutive dividend of Sh0.30 per share, totalling Sh99 million, underscoring its commitment to delivering consistent and reliable returns to investors,” Acorn said in releasing its half-year results.

ASA I-Reit plans to acquire the eighth and ninth assets from ASA D-Reit (which is acquiring the land and developing student hostels) later this year to strengthen its portfolio, the company said.