ASA Real Estate Investment Trusts (REITs) have continued to exhibit impressive performance in 2025, underpinned by effective debt management strategies, timely project completions, and strong portfolio expansion.
The ASA Income-REIT (ASA I-REIT) recorded a significant increase in net income, rising to KES 251 million in the first half of 2025, up from KES 164 million during the same period in 2024. This growth was largely driven by an increase in the value of investment properties, attributed to higher rental income and operational efficiencies across its portfolio.
A core priority for ASA I-REIT in 2025 has been the optimization of its debt structure. In July 2025, the REIT reduced its total outstanding debt from KES 2.5 billion to KES 1.9 billion. Additionally, it achieved a notable reduction in the weighted average interest rate from 17% at the end of 2024 to 11.1% by July 2025. These financial improvements are expected to result in substantial interest savings and support stronger full-year performance.
In a demonstration of its commitment to shareholder returns, the ASA I-REIT declared its ninth consecutive semi-annual distribution since its inception in 2021, amounting to KES 0.29 per unit. This comes despite ongoing macroeconomic challenges, underscoring the REIT’s resilience and focus on delivering consistent investor value.
Meanwhile, the ASA Development-REIT (ASA D-REIT) also posted a solid performance, with net income increasing to KES 205 million from KES 181 million in the same period last year. This growth was fueled by gains in property value, as several key projects—Qejani at Hurlingham, Qwetu and Qejani at Kenyatta University, and Qejani at JKUAT—were completed on schedule and within budget. All are now operational.
Further cementing its national footprint, ASA D-REIT has begun construction of new Qwetu and Qejani residences in Eldoret’s Central Business District, which will collectively add 2,100 student beds to its portfolio. In addition, the REIT is finalizing the acquisition of a site near Masinde Muliro University of Science and Technology (MMUST) in Kakamega, signaling its strategic move into Tier 2 university towns across Kenya.
Mathew Maina, Executive Director of ASA Investment Management Limited (AIML), the REIT Manager, stated: “Since launching in 2021, ASA REITs have shown consistent growth and delivered strong returns in a challenging market. In 2024, the ASA D-REIT delivered a total return of 13%, while the ASA I-REIT returned 7%. The 2025 half-year results affirm our path toward improved returns, driven by disciplined debt management, timely project delivery, and increased occupancy across our assets.”
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