The net profit of “Dubai Residential REIT” for the first half of 2025, prior to the adjustments for fair value changes in investment properties, reached 622 million dirhams, reflecting a growth of 10% compared to the first half of 2024.
The fund recorded profits totaling 1.9 billion dirhams in the first half of the current year, a significant increase from 565.26 million dirhams during the same period last year, marking a 239% rise, according to the fund’s financial data.
This profit growth is primarily attributed to a gain in the fair value of investment properties amounting to 1.3 billion dirhams.
This announcement marks the initial financial disclosure period for the fund since its listing on the Dubai Financial Market, during which it demonstrated strong financial and operational performance, characterized by increased rental income, exceptional occupancy rates, and a well-structured capital framework.
During the first half of 2025, revenues surged to 958 million dirhams, up by 10% compared to the same period in 2024. This growth was driven by robust continuous leasing rates and rising rental prices across the residential asset portfolio. Additionally, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 11%, reaching 718 million dirhams, due to revenue growth and improved operational efficiency, which led to a stable profit margin at 75%.
The average occupancy rate across the residential asset portfolio was remarkably high at 98%, while the average annual revenue per rented square foot increased significantly by 6%. Luxury residential properties reported strong occupancy rates at 98%, indicating continuous demand for upscale living in Dubai’s prime locations. Likewise, integrated residential communities maintained a high occupancy level of 97%, supported by the growing preference for residential environments designed specifically for families. Concurrently, affordable housing complexes showcased impressive performance with a 99% occupancy rate due to ongoing population growth and rising demand for budget-friendly housing options. Additionally, corporate housing units achieved full occupancy at 100%, underscoring the appeal and operational efficiency of employee housing locations.
The net profit before fair value changes in investment properties was 622 million dirhams, representing a 10% increase compared to the first half of 2024. The total asset value rose to approximately 23 billion dirhams, demonstrating a 7% growth since December 2024.
Nabil Mohammed Ramadan, Chairman of “Dubai Residential REIT,” commented on the fund’s financial performance: “The robust results we achieved in the first half of the year represent a significant milestone in our journey as a newly listed entity in the market. They reflect our long-term strategic vision and our solid governance approach, confirming our commitment to enhancing value for our unit holders. I am pleased to announce that the Board has approved an interim cash dividend distribution of 550 million dirhams for the first half of 2025, which will be paid in September 2025, reflecting our unwavering confidence in the fund’s strong financial standing and its ability to deliver long-term value for shareholders.”
As the largest fund managing a portfolio of residential real estate assets in Dubai, Dubai Residential REIT offers unit holders a stable investment platform managed to the highest professional standards, aligning with the emirate’s ongoing sustainable transformation and its growing stature. The board remains committed to upholding a rigorous governance framework, providing stable income, and delivering long-term value while actively contributing to Dubai’s comprehensive development agenda, both urban and economic.
Ahmed Al Suwaidi, General Manager of DHEAM Real Estate Investment Management, stated: “The strong financial results recorded by Dubai Residential REIT in the first half of the year reflect our operational efficiency and meticulous execution across all operational fronts—from asset management and leasing to enhancing tenant satisfaction and delivering exceptional services. These outstanding results, including a high occupancy rate of 98% and consistent EBITDA margins at 75%, confirm our commitment to achieving the highest levels of operational performance and prudent expense management.”
This success is attributed to our deep understanding of tenant expectations and needs, as well as our comprehensive and diligent management of the real estate asset portfolio, alongside our continual effort to enhance the quality of our strategically located residential communities. We will continue to bolster our leasing portfolio’s performance, achieve higher levels of customer satisfaction, and strengthen our capability to generate sustainable and stable cash flows, while persistently pursuing further growth and expansion across various residential sectors.
Market Outlook
The residential real estate sector in the United Arab Emirates continues to exhibit solid growth prospects and exceptional performance strength. Dubai stands out as a premier investment destination compared to other global cities, benefiting from accelerated population growth, rising individual income levels, and strategic government reforms that collectively attract highly capable and financially viable demographic segments. These economic stimuli, along with ongoing infrastructure development projects and increasing demand for upscale residential complexes, further enhance the attractiveness of the real estate market and create fertile ground for sustainable growth. Dubai Residential REIT holds a unique position to capitalize on these trends, owing to its size, strong governance framework, and balanced income-generating portfolio, enabling it to deliver stable returns and significant long-term value for fund investors.
Dividend Distribution Policy
Dubai Residential REIT will follow a semi-annual dividend distribution policy, with distributions scheduled for April and September each year, in line with the guidance provided during the initial public offering. The Board of Dubai Residential REIT has approved an interim cash dividend distribution of 550 million dirhams for the first half of 2025, to be paid in September 2025.
Earlier, Dubai Residential REIT announced that the total dividend for the first and second distributions, related to financial results for the year ending December 31, 2025, will be the higher of 1.1 billion dirhams or an amount equal to 80% of the profit for the period before changes in the fair value of investment properties, based on its financial results for fiscal year 2025.
As for the financial results for the year ending December 31, 2026 and beyond, Dubai Residential REIT intends to distribute at least 80% of the profits for the period before changes in the fair value of investment properties for each accounting period. All dividend distributions are subject to the approval of the Board of Dubai Residential REIT.