Dubai Holding aiming to float Dubai Residential REIT on DFM

DUBAI / WAM

Dubai Holding, through its wholly owned subsidiary DHAM REIT Management LLC (Fund Manager), on Monday announced its intention to launch an initial public offering (IPO) for Dubai Residential REIT, to list its units for trading on the Dubai Financial Market (DFM). Dubai Residential REIT is the GCC’s first pure-play listed residential leasing-focused REIT and, at the time of listing, is also expected to be the GCC’s largest listed REIT, with a gross asset value (GAV) of AED21.63 billion, almost double the combined GAV of the five largest REITs in the region.
DHAM Investments LLC (Selling Unitholder), a subsidiary of Dubai Holding, is currently the sole unitholder of Dubai Residential
REIT and is offering 1,625,000,000 units in the offering, representing 12.5 percent of Dubai Residential REIT’s issued unit capital. The First Tranche is allocated 10 percent of the offer units, representing 162,500,000, while the Second Tranche is allocated 90 percent of the Offer Units, amounting to 1,462,500,000 units. The offering subscription period is expected to run from 13th May 2025 to 20th May 2025 (both days included). Admission of units to trading on the DFM (Admission) is anticipated on or around 28th May 2025.
The Shariah Supervision Committee of Dubai Residential REIT and the Internal Shariah Supervision Committee of Emirates NBD Bank have issued fatwas confirming that both the REIT and the offering are compliant with Shariah principles.
Dubai Residential REIT intends to adopt a semi-annual dividend distribution policy, making payments in April and September of each year, starting from September 2025. The REIT expects that the sum of its first two dividend payments, expected to be made in September 2025 and April 2026, will be higher of: (i) AED1,100 million; and (ii) an amount equal to 80 percent of profit for the period before changes in fair value of investment property for each accounting period, subject to Board approval.
The fund’s portfolio covers 21 residential communities strategically located across Dubai, comprising more than 35,700 residential units—95 percent apartments and five percent villas. The portfolio achieved an average occupancy rate of over 96.8 percent last year, with a tenant retention rate of 87 percent.
Commenting on the launch of the Dubai Residential REIT IPO process, Amit Kaushal, Group Chief Executive Officer of Dubai Holding, said, “As one of the cornerstones of Dubai Holding, Dubai Holding Asset Management’s residential leasing portfolio, Dubai Residential, has consistently delivered high-quality communities that meet the evolving needs of Dubai’s diverse population.”
He added that the integration of Nakheel and Meydan’s residential portfolios under Dubai Holding last year was a significant milestone in Dubai Residential’s journey that enhanced its status as one of the region’s largest residential leasing platforms. This IPO presents investors with a unique opportunity to participate in this success story while benefiting from the wider capabilities and opportunities within the broader Dubai Holding ecosystem.
Malek Al Malek, Group Chief Executive Officer of Dubai Holding Asset Management and Chairman of the Investment Committee of DHAM REIT Management LLC, stated that the fund recorded revenues of AED1.8 billion in 2024, with adjusted operating profit reaching AED1.3 billion.
Speaking at a virtual press briefing today, Al Malek emphasised that Dubai’s real estate market is undergoing positive transformations, supported by population growth and government policies that encourage investment, providing a conducive environment for the fund to achieve sustainable growth.
Al Malek added that the fund has a clear expansion plan, which includes organic growth through the development of existing communities, alongside other expansion strategies through acquisitions of new assets.
Regarding potential asset listings, he noted that evaluations of future offerings of other Dubai Holding subsidiaries are ongoing. He confirmed that listing decisions depend on the readiness of each sector, without ruling out any future options.
Meanwhile, Ahmed Al Suwaidi, Managing Director of DHAM REIT Management LLC, said that Dubai Residential REIT offers investors a unique and convenient opportunity to invest in high-quality, income-generating residential properties across Dubai, without the complexities of direct property ownership and management.