LAPTRUST Imara I-REIT recorded a significant decline in earnings during the first half of 2026, with rental income nearly halving despite an improvement in property occupancy.
Rental income fell 49.6% to KSh124.63 million, while net profit declined 28.5% to KSh57.82 million. The weaker earnings resulted in a lower interim distribution to investors.
Total revenue dropped 42.2% to KSh176.29 million from KSh305.08 million in the same period last year, extending the REIT’s downward earnings trend following its stronger performance in 2024.
The impact was partly cushioned by lower operating costs, which fell 47.1% to KSh118.47 million. Provisions for bad debts declined by 74.1% to KSh31.45 million, helping to limit the deterioration in profitability.
LAPTRUST’s net profit has now fallen sharply from its H1 2024 peak of KSh162.38 million. Profit declined to KSh80.92 million in 2025 before falling further to KSh57.82 million in H1 2026, leaving the latest earnings 64.4% below the 2024 level.
Rental income has followed a similar downward trajectory. It increased from KSh167.10 million in H1 2023 to KSh198.35 million in 2024 and KSh247.21 million in 2025, before plunging to KSh124.63 million this year, below the level recorded three years ago. H1 2023 net profit stood at KSh99.63 million.
Property Values Continue to Decline
The weaker earnings come amid a prolonged decline in the value of LAPTRUST’s property portfolio.
The REIT’s seven properties were valued at KSh6.90 billion at the end of 2022, but this had fallen to KSh5.70 billion by June 2026. This represents a decline of approximately KSh1.20 billion, or 17.4%, over the period.
Net asset value also weakened, falling 8.0% over the past year to KSh5.87 billion. NAV per unit declined from KSh18.43 to KSh16.95, around 15% below the KSh20.00 issue price at which the REIT’s 346.23 million units were initially issued. The number of units in issue has remained unchanged.
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Returns have deteriorated alongside the decline in asset values. Annualised return on assets fell to 1.8% from 2.4%, while the portfolio’s net operating income yield dropped by half to 3.5% from 7.0%.
Distribution yield on NAV also declined to 1.5% from 1.9%, while NAV total return remained negative at 6.6%.
Occupancy Improves as Distribution Falls
Despite the weaker financial results, occupancy across the portfolio improved to 86% from 82%.
Residential properties recorded occupancy of 97%, while retail occupancy stood at 70%. Utility and education properties were fully occupied.
Commercial occupancy, however, declined to 89% as tenants reduced the amount of office space they use and negotiated more competitive lease terms. Parking occupancy was also weak at 54%, reflecting the impact of hybrid working arrangements and lower daily office utilisation.
Management said it is prioritising the retention of commercial tenants, increasing the use of underutilised parking areas, strengthening tenant screening, benchmarking rental rates and reducing property-related costs through bundled service contracts.
The REIT declared an interim distribution of KSh46.26 million, equivalent to KSh0.134 per unit, compared with KSh64.73 million a year earlier. The distribution represents 80% of distributable income.
LAPTRUST Imara I-REIT remains ungeared, meaning the deterioration in investor returns has largely been driven by weaker property income and declining asset values rather than borrowing and debt-servicing costs.
