Dubai Residential REIT IPO is oversubscribed over 26 times

Dubai: The Dubai Residential IPO has been set at Dh1.1 a unit, which means that Dubai's first stock market float of 2025 will have an initial market cap of Dh14.3 billion. And a gross dividend yield of 7.7% for 2025.

Dubai Residential REIT is to pay Dh1.1 billion as dividend for this year.

Overall subscriber demand soared past Dh56 billion, which means an overall oversubscription of over 26 times at the final offer price. "Reflecting the exceptionally strong demand, the final offer price was set at the top end of the price range, enabling the company to raise Dh2.14 billion through the IPO," said a statement.

"The offering attracted strong demand across both institutional and UAE retail tranches", which led to an upsizing of the IPO from 12.5% to 15%.

For Dubai Holding, the numbers will have met all of their expectations.

“The significant demand is a powerful endorsement of Dubai Holding’s strategic vision and the strength of our residential leasing portfolio," said Amit Kaushal, Group CEO of Dubai Holding.

And a portfolio that's 'been carefully developed and managed over more than two decades to meet the evolving needs of Dubai’s diverse population'. The new Dubai REIT packs in 21 communities, all of which are among the most sought after by tenants.

"This investor confidence speaks not only to the resilience of the UAE’s economic vision and Dubai’s long-term growth trajectory, but also highlights the increasing depth, maturity and global appeal of its capital markets," said Kaushal.

"We are confident in the ability of Dubai Residential REIT to deliver sustainable, long-term performance - our focus remains firmly on shaping the future of urban living in Dubai and contributing to the city’s continued evolution as a global hub for investment, innovation and high-quality living.”

Investors will get paid twice a year, starting September 2025.

The payment size for 2025 will be the higher of:

* Dh1.1 billion; and

* An amount equal to 80% of profit for the period before changes in fair value of investment property. This is for the financial year ending December 31, 2025.

For 2026 and beyond, Dubai Residential REIT 'intends to distribute' at least 80% of profit for the period before changes in fair value of investment property for each accounting period.