Al Mal Capital REIT, the first real estate investment trust listed on the Dubai Financial Market (DFM), has announced that it will soon launch a follow-on public offering (FPO) to raise capital for expanding its income-generating real estate portfolio.

 

The REIT, managed by Al Mal Capital, a subsidiary of Dubai Investments group, plans to offer up to 220 million new units at AED1.1 each. 

 

The subscription window for the FPO will run from July 7 to July 25, with trading of the new units anticipated around August 8, subject to regulatory approvals.

 

Al Mal Capital REIT has called upon eligible existing unitholders, as well as UAE and GCC retail and institutional investors, to take part in the offering. 

 

Once approved by the UAE's Securities and Commodities Authority (SCA), it is likely to rise the fund’s capital from AED514 million ($140 million) to AED734 million ($200 million).

 

Proceeds from the offering will be used to acquire real estate assets in resilient and high-growth sectors, including healthcare, education, and industrial properties considered mission-critical, the fund said in a statement.

 

Al Mal Capital REIT is managed by an experienced and respected investment team with a strong track record in managing income-generating commercial real estate assets. 

 

It benefits from a robust SCA regulated REIT framework, and oversight from an experienced committee, which qualifies opportunities, oversees and ensures the fund’s compliance with regulatory standards.

 

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," stated Al Nabulsi. 

 

Priority will be given to current unitholders as of June 26, allowing them to subscribe to new units equal to approximately 39% of their existing holdings. A minimum guaranteed allocation of up to 2,000 units will be available to new subscribers, subject to demand.

 

The REIT also announced an interim cash dividend of AED 0.0375 per unit for the period ending June 30, 2025, implying an annualized yield of 7.5%. Investors must purchase units by June 24 to be eligible, with the record date set for June 26.

 

"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," he added.

 

Al Mal Capital REIT has delivered a return of 7% since 2023 and targets ongoing returns of approximately 7%. The fund is regulated under the SCA REIT framework and benefits from oversight by an experienced investment committee.

 

The REIT’s portfolio is diversified across long-term leased properties in the UAE, supported by tenants with strong credit profiles, he added.-TradeArabia News Service