Dubai Residential REIT reported a 15.1 percent increase in net profit before fair value changes, reaching AED 716.5 million for the first half of 2026. The rise was driven by higher rental income, strong occupancy levels, and disciplined cost management.

The REIT’s revenue climbed 8.1 percent year-on-year to AED 1.04 billion, compared with AED 957.8 million in the same period of 2025. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 14.6 percent to AED 822.6 million, with the adjusted EBITDA margin expanding to 79.4 percent from 74.9 percent the previous year.

Average portfolio occupancy increased slightly to 98.6 percent from 98.1 percent, while the tenant retention rate improved to 94.1 percent. Average revenue per leased unit grew by 7.7 percent to AED 56,638, and average revenue per leased square foot increased by 7.5 percent to AED 59.7.

The board approved an interim cash dividend of AED 573.2 million, equivalent to 4.4 fils per unit. This distribution represents 80 percent of the net profit before fair value changes for the first half of the year. The dividend implies an annualized yield of approximately 8 percent based on the initial public offering price and 7.1 percent based on the closing price as of June 30, 2026.

Free cash flow conversion improved to 94.8 percent from 92.6 percent a year earlier, underscoring the strong cash-generation capabilities of the REIT’s residential leasing portfolio.

Ahmed Al Suwaidi, Managing Director of DHAM REIT Management, highlighted the company’s performance, stating it achieved double-digit net profit growth while maintaining near-full occupancy and increasing rental income across one of Dubai’s largest and most diversified residential leasing portfolios.