ILAM Fahari I-Reit, a real estate investment trust, has posted a net profit of Kes 42.2 million in the half-year period that ended on 30th June 2021, a 51% decline from the Kes 86 million reported in the same period last year.
The company attributed the decline to the steep drop to a loss of revenue from the anchor tenant at Greenspan Mall after the exit of the troubled Tuskys Supermarket. ILAM’s rental and related income dipped to Kes136.7 million at the end of June this year from Kes174.7 million at the end of June last year. However, the real estate firm said it has now brought Naivas supermarket as the replacement tenant.
Rental and related income decreased significantly by 22% kes 38.0 million owing to the aforementioned loss of revenue from the anchor tenant at Greenspan Mall, who occupied about 48% of the Gross Lettable Area (GLA). Rental income from the new anchor tenant will be recognized from the second half of the year.
Interest income in ILAM Fahari fell by 10% to Kes 11.8 million from Kes 13 million in June 2020. Its property expenses grew by 9% as a result of more tenants withholding 10% tax on rent paid. ILAM maintained its fund operating expenses at Kes 53 million in the first six months of 2021, the same as the fund operating expenses in the first half of 2020.
As of 30th June 2021, ILAM Fahari had total assets under management worth Kes 3.8 billion, comprising investment property valued at Kes 3.5 billion and cash reserves of Kes 315 million.
ILAM Fahari I-Reit is one of three such entities listed on the Nairobi Securities Exchange. The company owns four properties; a shopping centre, an office building, and two semi-office/ light industrial buildings, all valued at Kes 3.5 billion and the properties are held through special purpose vehicles.