Kenya's first US dollar-denominated Income Real Estate Investment Trust (I-REIT), ALP REIT, has posted its first-ever profit since listing on the Nairobi Securities Exchange.
The REIT reported a net profit of $230,000 (Sh29.7 million) for the six months ended June 30, 2026, marking its maiden earnings since becoming the latest property investment vehicle to join the NSE.
According to the firm, the result was supported by strong occupancy across its logistics and industrial property portfolio despite recognising only two months of rental income.
Chief Executive Officer Raghav Gandhi said the results demonstrate the resilience of the portfolio despite the limited rental income recognised during the reporting period.
"While this reporting period reflects only two months of property income, the portfolio has demonstrated strong occupancy, resilient cash generation and a robust balance sheet. As we complete the seed portfolio, we remain focused on delivering sustainable US dollar income, disciplined growth and long-term value for our unitholders," he said.
Its total assets stood at $45.18 million (Sh5.8 billion), comprising $26.53 million (Sh3.4 billion) in investment properties and $14.74 million (Sh1.4 billion) in cash, which the REIT said will be used to acquire a fourth logistics and industrial asset as it expands its portfolio.
The results reflect only two months of rental income because the transfer of the three seed properties into the trust was completed during the reporting period after obtaining regulatory and statutory approvals.
Excluding one-off listing and establishment expenses, the REIT generated Adjusted Funds From Operations (AFFO) of $460,000, (Sh5.9 million) highlighting the recurring cash earnings from its property portfolio.
The three seed assets maintained an occupancy rate of 98 per cent, driven by long-term leases with a diversified tenant base, while the REIT ended the period with no debt, leaving room to raise financing for future acquisitions.
Board Chairman Abel Munda said the successful deployment of capital into the initial portfolio and progress toward acquiring a fourth property position the REIT for long-term growth.
"With a robust balance sheet and the fourth asset acquisition progressing, we remain confident in the REIT's ability to deliver sustainable income and long-term value for our unitholders," he said.
The board did not recommend an interim distribution, noting that the REIT recognised only two months of rental income and is still completing the acquisition of its fourth asset.
Under Kenya's REIT regulations, income REITs are required to distribute at least 80 per cent of their distributable earnings to investors.
ALP REIT said it remains focused on expanding its portfolio of logistics and industrial properties backed by long-term leases, quality tenants and sustainable building standards.
