LAPTRUST Imara I-REIT has reported a net loss of KSh 280.32 million for the year ended 31 December 2025, widening from a KSh 204.30 million loss recorded the previous year.
The downturn was largely driven by a steep drop in rental earnings alongside a third straight decline in the valuation of its property portfolio, weighing heavily on overall performance.
Rental and related income fell sharply by 39.4% to KSh 290.58 million, down from KSh 479.06 million in FY2024, marking the most significant revenue contraction since the trust was listed. A near doubling of other operating income to KSh 190.43 million offered some relief, bringing total operating income to KSh 481.01 million, though still 17% lower year-on-year.
Operating costs were trimmed by 11.2% to KSh 263.34 million, reflecting tighter expense control. However, the savings were not enough to offset the revenue decline, with operating profit dropping 23.1% to KSh 217.67 million. Interest income also fell notably to KSh 42.11 million from KSh 70.73 million, resulting in a 26.6% drop in profit before valuation adjustments to KSh 259.78 million.
As in previous years, fair value losses on investment property remained the biggest drag. The trust recorded a KSh 540.10 million markdown in FY2025, following similar losses of KSh 558.18 million in FY2024 and KSh 187.36 million in FY2023. This brings the cumulative fair value deficit to KSh 1.29 billion, equivalent to 18.6% of the KSh 6.92 billion raised at listing. The value of its property portfolio has since declined to KSh 5.70 billion from KSh 6.71 billion at inception.
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Total equity fell by 7.7% to KSh 5.95 billion, translating to a net asset value of roughly KSh 17.20 per unit compared to the market price of KSh 20.00, leaving the units trading at a 14% premium to NAV. Analysts had already flagged weakening fundamentals earlier in 2025, noting the trust’s underperformance relative to peers.
On a more positive note, the REIT remains debt-free, and its cash position strengthened to KSh 317.70 million from KSh 202.79 million, supported by operating cash flows of KSh 284.17 million. Distributable income stood at KSh 207.83 million, underpinning a proposed final payout of KSh 0.60 per unit, subject to approval at the upcoming AGM.
Launched in November 2022 and listed in March 2023, LAPTRUST Imara I-REIT is Kenya’s first pension-backed REIT, with a diversified portfolio spanning office, retail, residential and education assets. It currently stands as the only REIT on the NSE’s main investment market following the exit of ILAM Fahari I-REIT.
