Dubai Residential REIT approves Dh573 million payout after profit surges 15%

Dubai: Dubai Residential REIT has approved an interim cash dividend of Dh573.2 million after net profit before fair value changes increased by 15.1% during the first half of 2026.

The payout is equivalent to 4.4 fils per unit and represents 80% of the REIT’s first-half net profit before changes in the fair value of investment property.

On an annualised basis, the dividend implies a yield of approximately 8% on the initial public offering price and 7.1% on the closing price recorded on June 30, 2026.

Rental income lifts earnings

Revenue increased by 8.1% year on year to Dh1.04 billion during the six months ending June 30, compared with Dh957.8 million during the corresponding period of 2025.

Higher rental rates and improved occupancy supported the increase, with average revenue per leased residential unit rising by 7.7% to Dh56,638 from Dh52,594.

Average revenue per leased square foot increased by 7.5% to Dh59.70, reflecting higher realised rents across the portfolio.

Adjusted earnings before interest, taxes, depreciation and amortisation rose by 14.6% to Dh822.6 million, while the adjusted EBITDA margin increased to 79.4% from 74.9%.

Net profit before fair value changes reached Dh716.5 million, up from Dh622.3 million a year earlier, while free cash flow conversion improved to 94.8% from 92.6%.

Occupancy reaches 98.6%

Average portfolio occupancy increased to 98.6% during the first half from 98.1% a year earlier, while the tenant retention rate improved to 94.1% from 93.8%.

The portfolio contained 35,976 residential units at the end of the reporting period, an increase of 275 units compared with the first half of 2025.

Growth during the period included the addition of 56 Garden View Villas and the acquisition of 220 units in Jebel Ali Village.

Gross asset value rose by 6.9% to Dh25.2 billion at the end of June, compared with Dh23.5 billion on December 31, 2025. Excluding the acquisitions, gross asset value increased by approximately 1.4% on a like-for-like basis.

Net asset value increased by 2.4% to Dh22.6 billion, while net asset value per unit rose to Dh1.74 from Dh1.70 at the end of 2025.

Further residential acquisitions considered

The REIT maintained a net finance-to-value ratio of 6.8%, compared with 3.3% in the first half of 2025. The increase was mainly linked to the completion of the two acquisitions during the period.

Dubai Residential REIT has also submitted expressions of interest to acquire three medium-term residential projects containing 448 premium units and 107 community units.

The company said it would continue evaluating potential additions from the Dubai Holding and Dubai Holding Asset Management development pipeline.

“Looking ahead, we will continue to manage the portfolio with discipline, capture value through active asset management and evaluate further value-accretive opportunities within the Dubai Holding and Dubai Holding Asset Management pipeline. Our focus remains clear, leveraging this differentiated residential platform to deliver stable income and create long-term value for unitholders.”

The REIT said Dubai’s residential leasing market continued to record high occupancy, leasing activity and underlying demand during the first half, despite recent regional developments.