Dubai Residential REIT reports 15% H1 profit growth, approves AED573 million interim dividend

Dubai: Dubai Residential REIT reported strong financial and operational results for the first half of 2026, with net profit before changes in the fair value of investment property rising 15.1% year-on-year to AED716.5 million, compared to AED622.3 million in the same period last year. The growth was driven by higher rental income, increased occupancy levels and disciplined cost management across the portfolio. Revenue increased 8.1% year-on-year to AED1.036 billion, up from AED957.8 million in the first half of 2025, while adjusted EBITDA rose 14.6% to AED822.6 million. The REIT's adjusted EBITDA margin expanded to 79.4%, compared with 74.9% a year earlier. The Board approved an interim cash dividend of AED573.2 million, equivalent to 4.4 fils per unit, representing 80% of net profit before changes in the fair value of investment property for the first half of 2026. The dividend implies an annualised yield of approximately 8.0% based on the IPO price and 7.1% based on the closing price as of 30 June 2026. Operationally, the REIT maintained strong portfolio performance, with average occupancy rising to 98.6%, an increase of 0.5 percentage points compared with the same period last year. Tenant retention also improved to 94.1%, up from 93.8% a year earlier, highlighting sustained demand across its residential communities. Gross Asset Value (GAV) increased to AED25.2 billion at the end of June 2026, up 6.9% from the end of 2025. The increase was primarily driven by the addition of 56 Garden View Villas and the acquisition of 220 units in Jebel Ali Village. Net Asset Value (NAV) rose to AED22.6 billion, while NAV per unit increased to AED1.74, compared with AED1.70 at the end of December 2025. Ahmed Al Suwaidi, Managing Director of DHAM REIT Management, said the results highlighted the strength of the portfolio and the depth of demand across its communities. "Dubai Residential REIT's H1 2026 performance demonstrates the quality of our portfolio, the depth of demand for our communities and the discipline with which we are executing our strategy," he said. "We delivered double-digit net profit growth, maintained near-full occupancy and continued to grow rental income across one of Dubai's largest and most diversified residential leasing portfolios." Looking ahead, Al Suwaidi said the REIT will continue to pursue active asset management strategies and evaluate new opportunities within the Dubai Holding and Dubai Holding Asset Management pipeline. The REIT also announced that it has submitted Expressions of Interest for the acquisition of three medium-term residential projects comprising 448 premium units and 107 community units, as it seeks to expand its portfolio and create long-term value for unitholders.