Al Mal Capital REIT Announce $4.2 Million in Dividend

Al Mal Capital REIT (AMCREIT), the first Real Estate Investment Trust (REIT) listed on Dubai Financial Market (DFM) and regulated the UAE’s by Securities and Commodities Authority (SCA), and managed by Dubai Investment’s subsidiary Al Mal Capital, on Thursday announced an interim dividend for the six months ended 30 June 2024 amounting to around $4.2 million as against around $3.35 million for the six months ended 31 December 2023.

The interim dividend on the enhanced equity raised through a rights issue in April 2024, marks the distribution to the existing and new unitholders after the completion of rights issue in April 2024, the company said in a regulatory filing this morning.

The income from the acquisition of Carnation Education LLC during end of June 2024 will be accretive to AMCREIT commencing the second half of 2024. AMCREIT will pay the interim dividend to the unit holders with the entitlement date set for 22 August 2024.

AMCREIT delivered a strong financial performance for the six months ended 30 June 2024 as its balance sheet surpassed $272 million during H1 of 2024 with the investment properties at $269.26 million compared with $157.36 million as of 31 December 2023).

The acquisition of Carnation Education LLC enhanced the investment portfolio of AMCREIT. The rental income of $6.78 million and the net property income of $6.62 million represented an increase of 17% respectively over the corresponding period of six months last year.

The overall net profit (including revaluation gain) of $10.18 million was higher by 69% vis-a-vis the corresponding period of six months in 2023, the company said and added that AMCREIT continued to offer its investors access to an asset class with strong fundamentals in performing sectors including education, healthcare, and industrials.

As at the end of 30 June 2024, AMCREIT’s investment properties neared $272 million, a significant milestone since the first acquisition in November 2021. The REIT’s portfolio comprises five school campuses including two in Ajman (operated by Al Shola Group), two in Sharjah (operated by GEMS Education) and one in Dubai, which is operated by Aldar Education.

Two Tasks Completed

Naser Al Nabulsi, Vice Chairman and CEO of Al Mal Capital PSC said that the H1-2024 the company delivered a strong performance delivered and they accomplished two key tasks in this period including an incremental capital raise and successfully deploying the same within the first half of 2024.

“Despite the continuing higher interest rate environment globally, AMCREIT continues with its dividend paying track record. With the accretion of the recent acquisition commencing from the second half of 2024, we anticipate a consistent performance by AMCREIT in the second half of the year,” he added.