Dubai Residential REIT declares 4.4 fils per unit interim payout, with occupancy reaching 98.6%.
Dubai Residential REIT has approved an interim cash dividend of Dh573.2 million after reporting a 15.1% rise in first-half 2026 net profit before fair value adjustments.
The distribution amounts to 4.4 fils per unit, representing 80% of the REIT’s first-half net profit before fair value adjustments on investment properties.
On an annualised basis, the dividend represents an estimated yield of about 8% against the IPO price and 7.1% based on the closing share price on June 30, 2026.
Rental income drives growth
Revenue rose 8.1% year on year to Dh1.04 billion in the six months ended June 30, compared with Dh957.8 million in the same period in 2025.
Higher rents and stronger occupancy levels boosted performance, with average revenue per leased residential unit increasing 7.7% to Dh56,638 from Dh52,594.
Average revenue per leased square foot also grew 7.5% to Dh59.70, reflecting improved rental yields across the portfolio.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 14.6% to Dh822.6 million, lifting the adjusted EBITDA margin to 79.4% from 74.9%.
Net profit before fair value adjustments rose to Dh716.5 million from Dh622.3 million in the previous year, while free cash flow conversion improved to 94.8% from 92.6%.
“We achieved double-digit net profit growth, sustained near-full occupancy levels, and continued expanding rental income across one of Dubai’s largest and most diversified residential leasing portfolios,” said Ahmed Al Suwaidi, Managing Director of DHAM REIT Management.
Occupancy climbs to 98.6%
Average portfolio occupancy rose to 98.6% in the first half of 2026, compared with 98.1% a year earlier, while tenant retention improved to 94.1% from 93.8%.
The portfolio comprised 35,976 residential units at the end of the reporting period, representing an increase of 275 units compared with the first half of 2025.
Portfolio growth during the period was supported by the addition of 56 Garden View Villas and the acquisition of 220 residential units in Jebel Ali Village.
Gross asset value increased 6.9% to Dh25.2 billion as of June 30, compared with Dh23.5 billion at the end of December 2025. Excluding acquisitions, the portfolio’s gross asset value grew by around 1.4% on a like-for-like basis.
Net asset value rose 2.4% to Dh22.6 billion, while net asset value per unit improved to Dh1.74 from Dh1.70 at the end of 2025.
REIT explores further residential acquisitions
Dubai Residential REIT reported a net finance-to-value ratio of 6.8%, up from 3.3% in the first half of 2025, primarily due to the completion of two acquisitions during the period.
The REIT has also submitted expressions of interest for the acquisition of three medium-term residential developments comprising 448 premium units and 107 community units.
The company said it would continue assessing potential acquisitions from the development pipeline of Dubai Holding and Dubai Holding Asset Management.
“Looking ahead, we will continue to manage the portfolio prudently, unlock value through proactive asset management and assess additional value-enhancing opportunities across the Dubai Holding and Dubai Holding Asset Management pipeline. Our priority remains to leverage this distinctive residential platform to provide stable income and generate long-term value for unitholders,” the company said.
The REIT noted that Dubai’s residential leasing market maintained strong occupancy levels, robust leasing activity and sustained underlying demand during the first half of the year, despite recent regional developments.
