LAPTRUST I-REIT Profit Falls 29% as Rental Income Nearly Halves
Written on
LAPTRUST Imara I-REIT reported a sharp decline in first-half earnings despite higher occupancy across its property portfolio. Falling rental income and lower property values are putting pressure on returns for investors.
LAPTRUST Imara I-REIT recorded a 28.5% decline in net profit to KSh57.82 million in the first half of 2026, despite an improvement in overall property occupancy. Rental income fell by 49.6% to KSh124.63 million, placing significant pressure on earnings.
Total revenue declined 42.2% to KSh176.29 million, while operating expenses fell 47.1% to KSh118.47 million, providing some relief. Portfolio occupancy nevertheless improved to 86% from 82%, with residential occupancy reaching 97%.
The weaker earnings have coincided with declining property values. LAPTRUST's seven properties were valued at KSh5.70 billion in June 2026, down from KSh6.90 billion at the end of 2022. Net asset value also fell 8% year-on-year to KSh5.87 billion, while NAV per unit declined to KSh16.95 from KSh18.43.
Commercial occupancy remained relatively strong at 89%, although hybrid working and reduced office usage contributed to lower parking occupancy. The portfolio's net operating income yield also fell to 3.5% from 7.0%, highlighting the pressure on property income and investor returns.
The results underline the challenges facing income-focused property investments in Kenya, where occupancy alone may not guarantee stronger returns if rental income and asset values remain under pressure.
Read the full story at Kenyan Wall Street(opens in new tab)