Student hostel provider Acorn has reported a 32 per cent growth in profit for the half-year to June for its Acorn Student Accommodation Development REIT and the Acorn Student Accommodation Income REIT.
Combined profit for the period rose to Sh457 million from Sh345million recorded during the same period in 2024, driven by continued investment in the accommodation space that has gained traction with increased learning institutions that have sustained demand.
Total assets under management grew to Sh26.8 billion, compared to Sh 22.3 billion in June 2024 as its portfolio currently stands at 20,000 beds, solidifying Acorn’s position as Africa’s largest purpose-built student accommodation provider.
The Acorn Student Accommodation Income REIT (ASA I-REIT) net income rose to Sh251 million compared to Sh164 million in the same period in 2024, driven by gains in value of investment properties as a result of rent increases and operational efficiencies.
The ASA I-REIT has prioritised reduction in both the quantum and cost of local bank debt for 2025.
In July 2025, the REIT successfully reduced its total debt from Sh2.5 billion to Sh1.9 billion and lowered its weighted interest rate from 17 per cent recorded at the end of 2024, to 11.1 per cent in July 2025. The resultant savings, management said, are expected to reflect in the full year results.
“Despite macroeconomic headwinds, the ASA I-REIT remains committed to delivering consistent returns to investors,” Acorn Investment Management Limited executive director, Mathew Maina, said.
Demonstrating this commitment, the REIT has declared its ninth consecutive half year distribution since inception in 2021 of Sh0.29 per unit.
A real estate investment trust (REIT) is a company that owns, operates or finances income-generating real estate and sells shares to raise capital to do so.
During the period under review, the Acorn Student Accommodation Development REIT (ASA D-REIT) recorded a net income of Sh205 million compared with Sh181 million in the same period in 2024.
This was driven by gains in value of investment as Qejani at Hurlingham, Qwetu and Qejani at Kenyatta University, and Qejani at JKUAT which were completed on time and budget and are now operational.
The ASA DREIT as a developer accrued significant contractor bills as at June 30, 2025 upon completion of the three new projects.
“These accruals are backed by secured long-term borrowings and will shift to non-current liabilities in the second half of the year once disbursements from the long-term facility are finalised, aligning the balance sheet with the long-term nature of the underlying obligations,” said Maina.
The ASA DREIT has acquired and commenced construction of Qwetu and Qejani in Eldoret CBD which will add 2,100 beds to the portfolio and is in the final stages of concluding an acquisition in Kakamega next to MMUST.
Both acquisitions mark the REITs strategic expansion into Tier 2 University towns in Kenya further deepening its footprint nationally.
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 seven 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,’ said Maina.
About Acorn Investment Management Limited (AIML) is a licensed REIT Manager by the Capital Markets Authority and a subsidiary of Acorn Holdings Limited.
Specialising in real estate investment management, AIML oversees capital raising, acquisitions and asset management for the ASA REITs.
