Lead image for LAPTRUST I-REIT Profit Falls 29% as Rental Income Slumps Despite Higher Occupancy.
LAPTRUST Imara I-REIT reported a sharp deterioration in property earnings in H1 2026, with rental income falling 49.6% to KSh 124.63Million even as portfolio occupancy improved to 86% from 82%, pushing net profit down 28.5% to KSh 57.82Million and prompting a lower interim distribution.
- Total revenue fell 42.2% to KSh 176.29Million from KSh 305.08Million a year earlier, extending a reversal from the REIT's stronger performance in 2024.
- Operating expenses provided some cushion, declining 47.1% to KSh 118.47Million, including a 74.1% reduction in provisions for bad debts to KSh 31.45Million.
- Net profit peaked at KSh 162.38Mn in H1 2024 before falling to KSh 80.92Million in 2025 and KSh 57.82Million this year, leaving H1 2026 earnings 64.4% below the 2024 peak.
Rental income followed a similar reversal, rising from KSh 167.10Mn in H1 2023 to KSh 198.35Mn in 2024 and KSh 247.21Mn in 2025 before dropping below its 2023 level this year. H1 2023 profit stood at KSh 99.63Mn.
Property Values Continue to Erode
The earnings pressure has coincided with a sustained decline in the value of the underlying portfolio. LAPTRUST's seven properties were valued at KSh 6.90Bn at the end of 2022, compared with KSh 5.70Bn by June 2026 - an erosion of about KSh 1.20Bn, or 17.4%, since inception.
Net asset value has also trended lower. NAV fell 8.0% over the latest year to KSh 5.87Bn, while NAV per unit declined to KSh 16.95 from KSh 18.43. The latest NAV per unit is about 15% below the KSh 20.00 value at which the REIT's 346.23Mn units were originally issued. The number of units has remained unchanged.
Returns weakened alongside asset values. Annualised return on assets fell to 1.8% from 2.4%, while portfolio net operating income yield halved to 3.5% from 7.0%. Distribution yield on NAV declined to 1.5% from 1.9%, and NAV total return remained negative at 6.6%.