Acorn Student Accommodation REIT posts Sh285.2 million half-year profit

Acorn Student Accommodation Income Real Estate Investment Trust (ASA I-REIT) recorded a net profit of Sh285.2 million in the first half of 2026, up from Sh251.6 million during the same period last year, supported by higher rental income, improved occupancy and lower financing costs.

Fund manager Acorn Investment Management Limited (AIML) said the improved performance was driven by increased rental earnings, stronger occupancy across its properties and a 36.3 percent reduction in finance costs following continued debt optimisation.

The REIT also recorded a 21.7 percent increase in total assets during the six-month period after acquiring the Qwetu Karen and Qejani Karen student accommodation facilities.

According to Acorn, the trust continued to strengthen its financial position, with its Management Expense Ratio improving to 0.49 percent from 0.66 percent a year earlier.

The company also maintained a Loan-to-Value ratio of 22.3 percent, remaining well below the regulatory ceiling of 35 percent.

“The ASA I-REIT will continue to focus on portfolio expansion through value-accretive acquisitions, debt optimisation and operational efficiency as it grows recurring income to enhance long-term investor returns,” the company said in a statement.

Across its two real estate investment trusts, Acorn reported a 30 percent increase in total revenue to Sh937 million during the review period.

Assets under management also rose to Sh30.3 billion, up from Sh26.8 billion in June 2025, largely driven by the acquisition of the Qwetu Karen and Qejani Karen properties.

The two REITs—ASA I-REIT and ASA Development REIT (D-REIT)—now provide approximately 20,000 student accommodation beds, reinforcing Acorn’s position as one of Kenya’s largest purpose-built student housing providers.

Acorn Investment Management Limited Executive Director Mathew Maina said the first-half results reflected continued growth across the company’s portfolio.

“The first half of the year reflects continued execution across both REITs. During the period we expanded assets under management, completed the transfer of two stabilised assets into the Income REIT, refinanced short-term debt and continued improving the operating performance of the portfolio,” he said.

Maina added that the company had also launched the Zinduka Programme in partnership with Absa Bank Kenya and Co-operative Bank of Kenya to improve access to Qwetu and Qejani student accommodation through structured rent financing.