Naivas move to Greenspan Mall lifts Fahari i-REIT half-year profit

The entry of Naivas as the anchor tenant at the Greenspan Mall has served to lift the performance of ICEA’s Fahari Real Estate Investment Trust (i-REIT).

The entry of the leading retailer at the hub in February 2022 lifted the i-REIT rental and related income up by 26 per cent or Ksh.35 million in six months of operations to June.

Total revenue for the i-REIT in the six months was higher by 24.6 per cent to Ksh.168.4 million from Ksh.135.2 million.

Meanwhile, operating expenses for the unit fell to Ksh.100.1 million from a higher Ksh.106.3 million last year.

Property expenses decreased by eight per cent in the period from the reduction in provision for irrecoverable withholding tax.

ICEA Lion says it was successful in securing tax exemption letters for the i-REIT subsidiaries which enabled tenants cease withholding 10 per cent of rental income from April.

Fahari i-REIT more than doubled its half-year profit to Ksh.86.2 million from Ksh.42.2 million on the back of the improved revenues and ease to costs.

The i-REIT manager has nevertheless not recommended an interim distribution to unit holders for the period.

ILAM Fahari i-REIT held Ksh.3.6 billion in total assets under management including Ksh.3.3 billion in investment properties and Ksh.329 million in cash reserves.