Acorn Investment Management Limited (AIML) has reported a Sh457 million combined profit for its ASA Student Accommodation REITs in the half-year ending June 30, 2025, marking a 32 per cent jump from Sh345 million a year earlier, as it expanded its Purpose-Built Student Accommodation (PBSA) portfolio to 20,000 beds across Kenya.
The results, released on Thursday, showed the ASA I-REIT and ASA D-REIT continued to weather economic volatility while growing investor returns and strengthening their asset base.
AIML, which manages both REITs, said total assets under management climbed to Sh26.8 billion, up from Sh22.3 billion in June 2024.
The ASA I-REIT, which focuses on income-generating student housing properties, recorded a net income of Sh251 million, compared to Sh164 million during the same period last year.
The growth was credited to improved property valuations fuelled by higher rental yields and tighter operational efficiency.
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In a move to lower finance costs, the ASA I-REIT cut its debt load from Sh2.5 billion to Sh1.9 billion in July 2025.
It also trimmed the average interest rate from 17 per cent in December 2024 to 11.1 per cent. These savings are expected to improve the REIT’s full-year performance.
Despite inflationary pressure and tightening credit markets, the I-REIT maintained its track record of delivering payouts to investors.
It declared its ninth consecutive half-year distribution since its launch in 2021, amounting to Sh0.29 per unit.
Meanwhile, the ASA D-REIT, which finances the development of new student housing facilities, posted a net income of Sh205 million, up from Sh181 million in the same period of 2024.
The rise was mainly driven by completed projects such as Qejani at Hurlingham, Qwetu and Qejani at Kenyatta University, and Qejani at JKUAT—all delivered on time and within budget.
Following the completion of these three projects, the D-REIT accrued significant contractor liabilities as of June 30, 2025.
AIML said these would be converted into non-current liabilities in the second half of the year once funds from secured long-term borrowings are disbursed, bringing the REIT’s balance sheet in line with its long-term obligations.
The D-REIT also broke ground on new developments in Eldoret’s central business district, with Qwetu and Qejani facilities set to add 2,100 beds.
In addition, a deal to acquire land adjacent to Masinde Muliro University of Science and Technology (MMUST) in Kakamega is nearing completion.
These steps are part of a wider strategy to penetrate Kenya’s Tier 2 university towns.
Reflecting on the half-year performance, Mathew Maina, Executive Director at AIML, remarked: “Since inception in 2021, the ASA REITs have continued to demonstrate sustained growth and return despite the significant volatility in the market environment over this period. In 2024, the ASA DREIT achieved a total return of 13 per cent and the ASA IREIT 7 per cent. Based on the 2025 half-year results, the REITs remain on course to deliver improved returns in 2025, driven by debt optimisation, keeping projects on plan and increasing occupancy across the portfolio.”
With its asset base expanding and occupancy levels growing, AIML’s twin REITs appear well-placed to deepen their national reach while offering stable returns to investors, even in a challenging economic climate.
