Acorn Investment Management Limited (AIML) has reported a robust financial performance for the year ended December 31, 2024, with net profit soaring nearly threefold to Sh1.4 billion from Sh467 million in 2023.
The growth, almost 200 per cent, was fueled by the rebound of the Acorn Student Accommodation Development REIT (ASA D-REIT), whose profitability surged significantly during the period.
Mathew Maina, the Director of AIML, said that despite prevailing macroeconomic challenges, the ASA REITs demonstrated remarkable resilience, a testament to the strength of their underlying assets and the soundness of Acorn’s strategic approach.
Total Assets Under Management (AUM) across the two REITs grew by Sh5.6 billion to reach Sh26.4 billion, up from Sh20.6 billion the previous year. Acorn’s portfolio now encompasses 21,000 operating and development-stage student beds, solidifying its status as 0ne of Africa’s leading Purpose-Built Student Accommodation (PBSA) provider.
“Despite macroeconomic headwinds, the ASA REITs continue to perform well due to strong underlying fundamentals. We are now focused on optimizing debt costs – especially in the I-REIT, mitigating macroeconomic pressures, and expanding into other university towns in Kenya as part of our medium-term growth strategy. Sustained profitability and strong investor returns will be our top priorities as we scale our PBSA portfolio to meet the growing demand,” Maina said.
The Acorn Student Accommodation Income REIT (ASA I-REIT) recorded a milestone, exceeding Sh1 billion in annual rental revenue for the first time. Maina said the growth was underpinned by high occupancy levels and strategic portfolio expansions, including the acquisition of Qwetu Aberdare Heights II. The 627-bed property, valued at Sh1.5 billion, pushed the I-REIT’s total AUM to Sh11 billion and extended its portfolio to include seven green-certified properties.
The I-REIT maintained its track record of consistent investor distributions, declaring a total payout of Sh224 million for 2024, the eighth consecutive year of returns since its inception four years ago. Maina said in response to elevated interest rates, AIML is prioritizing debt refinancing to reduce costs, preserve equity value, and enhance yields for investors. Plans are underway to double the operating bed capacity by the end of 2026, signaling continued expansion and growth in rental income.
The Acorn Student Accommodation Development REIT (ASA D-REIT) rebounded strongly in 2024, driven by the completion of its first fully originated assets. Operating profit surged to Sh1.5 billion from Sh728 million, while net profit skyrocketed to Sh840 million from Sh71 million in 2023. The D-REIT also enhanced investor returns, declaring a payout of Sh293 million in December 2024, up from Sh240 million the previous year.
Additionally, the Net Asset Value (NAV) per unit climbed to Sh26.68, compared to Sh24.54 at the close of 2023. Expanding its pipeline further, the D-REIT acquired a prime site in Eldoret Central Business District (CBD), which will add 2,100 beds and increase total AUM to Sh15.4 billion from Sh11.5 billion the previous year.
Maina said as the sector grows, Acorn aims to meet rising demand and consolidate its leadership in Africa’s PBSA segment, ensuring strong investor returns and operational excellence.
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