NAIROBI, Kenya, Mar 30 – Student hostel developer Acorn Investment Management Limited (AIML) has announced a net profit of Sh855 million for the 2022 full year.
AIML runs Qwetu and Qejani Student Residences in Nairobi and surrounding areas.
Profits came from the Acorn Student Accommodation Income REIT (ASA I-REIT) and the Acorn Student Accommodation Development REIT (ASA D-REIT).
It attributes its high income to strong occupancy across its operational properties, high rent, and the scaling up of the portfolio through the acquisition of two new assets (Qwetu Parklands and Qwetu Aberdare Heights) despite a disruption of the school calendar due to the Covid-19 pandemic.
“2022 was not without its headwinds and this was evidenced by the overall performance of the capital markets,” Acorn’s AIML managing director Raghav Gandhi said.
“The ASA REITs nevertheless exhibited strong growth despite the challenging environment, which speaks volumes to the rationale for investing in REITs, which offer a consistent and predictable return profile – after all, we are announcing our fourth straight dividend from the ASA I-REIT,” Gadhi added.
While ASA D-REIT posted a Sh349.7 million income, ASA I-REIT raised a Sh442 million during the period.
“Our focus during the past year was to lay the foundations for future growth and this included the validation of the investment thesis through the scaling up of the ASA REITs and the first milestone transaction between the ASA D-REIT and the ASA I-REIT,” the MD added.
“We believe that our work in 2022 holds us in good stead for the upcoming phase of further growth.”
Acorn charges between Sh15,000 and Sh16,500 for a room on the premium Qwetu brand and between Sh7,500 and Sh12,500 under the Qejani brand.
