Acorn Holdings, a key player in real estate development, announced a significant increase in dividends for its unitholders across its real estate investment trusts (Reits). Following the successful distribution of profits from its development Reits, Acorn has raised its total dividends to Sh482.8 million, up from Sh 192.48 million.
In a notable move, the Acorn Student Accommodation Development Reit (ASA D-Reit) marked its first distribution, disbursing Sh240 million, equivalent to Sh0.91 per unit, in December 2023. Despite a decline in net profit to Sh71.6 million in 2023 from Sh384.2 million in 2022, attributed to reduced fair value gains on investment properties, Acorn utilized retained earnings to fund the distribution.
Meanwhile, the Acorn Investment Reit (I-Reit) witnessed an increase in total distribution to Sh242.8 million, or Sh0.77 per unit, up from Sh 192.5 million in 2022. This growth, despite a profit dip to Sh 396.1 million in 2023 from Sh504.9 million in 2022, reflects Acorn’s strategic financial management amidst market challenges.
Recognizing factors such as rising interest rates and construction cost escalations, Acorn remains focused on optimizing its debt structures. Recent acquisitions, including Qwetu Hurlingham, have expanded its asset portfolio to Sh9.2 billion. Plans for hostel developments in Nairobi CBD, catering to students from renowned institutions, underscore Acorn’s commitment to sustainable growth and community development.
In summary, Acorn’s decision to boost dividends underscores its dedication to maximizing shareholder value while navigating market dynamics with prudence and strategic foresight.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
29th March, 2024
Article and News Disclaimer
The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.
The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.
The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.
By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.
www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.
Serrari Group 2023
