Al Mal Capital REIT announces follow-on public offering

25/06/2025 00:58 AST

Al Mal Capital REIT, the first REIT listed on the Dubai Financial Market (DFM), on Tuesday announced a follow-on public offering (FPO) on its closed ended Real Estate Investment Trust (REIT).

The FPO, approved by the Securities and Commodities Authority (SCA), will issue up to 220 million units at a price of Dh1.1, increasing the issued capital of the Fund from Dh513,889,872 up to Dh733,889,872. The FPO is open to existing unitholders, as well as UAE and GCC individual and institutional investors.

The funds raised will be used to expand the REIT's portfolio of income generating real estate assets carefully selected from secure growth sectors, including healthcare, education and mission-critical industrial assets. The subscription will run from July 7 to 25, with trading of the new units expected to commence on the Dubai Financial Market (DFM) around August 8, subject to regulatory and market approvals.

Al Mal Capital REIT, managed by Al Mal Capital PSC, a subsidiary of Dubai Investments PJSC, has a proven and stable track record having delivered a 7 per cent return since 2023. It continues to target ongoing returns of c.+7 per centi for investors. In line with this performance, the REIT is also announcing a cash dividend of Dh0.0375 per unit for the interim period ending 30 June 2025, representing an annualized yield of 7.5 per cent. To receive this dividend, investors must purchase units no later than 24 June 2025, as only unitholders on record as of 26 June 2025 will be eligible.

Commenting on the FPO, Naser Al Nabulsi, Vice Chairman and CEO at Al Mal Capital said: "There is a growing investor appetite for Regional REITs as shown by recent offerings on the DFM that saw record-breaking retail participation, especially in the UAE. We are therefore pleased that we can offer more investors a chance to access Al Mal Capital REIT, the first REIT listed on the DFM, which continues to deliver strong and consistent dividends. Our focus on resilient real estate sectors which offer sustainable and recurring income based on secure cashflow and long-term demand, will be very attractive for both institutional and retail buyers."

A priority allocation will be available to subscribers who already hold units in AMC REIT, and whose names appear in the register of unitholders as of June 26 (the 'Record Date'). These investors will be allocated units equal to approximately +39 per cent of their current holdings, ensuring their ownership remains undiluted following the capital increase.

A secondary allocation of unsubscribed units, after completion of the priority allocation, will have a Minimum Guaranteed Allocation (MGA) of up to 2,000 units per eligible new subscriber, subject to request and availability.

Al Mal Capital REIT is a closed ended real estate investment trust (REIT) that is currently invested in a diversified portfolio of income generating real estate assets in the UAE, based on secure long-term lease agreements with a strong credit profile. The Fund gives UAE and GCC investors access to an asset class with long-term fundamentals, based on a strategy focused on investing in strong-performing UAE sectors, including healthcare, education and industrial assets.

Khaleej Times