Al Mal Capital REIT Announces Follow-on Public Offering, Expanding Portfolio and Paying Out Dividends

Strategic Insights -

Al Mal Capital REIT, the first REIT listed on the Dubai Financial Market, is inviting investors to subscribe to new units in its closed-ended Real Estate Investment Trust (REIT) through a follow-on public offering (FPO). The FPO aims to expand the REIT's portfolio of income-generating real estate assets in secure growth sectors, including healthcare, education, and mission-critical industrial assets. The new funds will be used to bolster the REIT's portfolio and provide a cash dividend to existing unitholders.

Key Takeaways:

  • The FPO will issue up to 220 million new units at a price of AED 1.1, increasing the issued capital of the Fund from AED 513,889,872 to AED 733,889,872.
  • The raise will be used to expand the REIT's portfolio of income-generating real estate assets in secure growth sectors.
  • Al Mal Capital REIT has a proven and stable track record, delivering a 7% return since 2023, and continues to target ongoing returns of around +7% for investors.
  • The REIT is announcing a cash dividend of AED 0.0375 per unit for the interim period ending 30 June 2025, representing an annualized yield of 7.5%.
  • The subscription period for the FPO will run from 7 July to 25 July 2025, with trading of the new units expected to commence on the Dubai Financial Market around 8 August 2025.
  • Existing unitholders will be eligible for a priority allocation of up to +39% of their current holdings, with a minimum guaranteed allocation of up to 2,000 units for eligible new subscribers.
  • Al Mal Capital REIT is a closed-ended real estate investment trust (REIT) currently invested in a diversified portfolio of income-generating real estate assets in the UAE, based on secure long-term lease agreements with a strong credit profile.

Statistics:

  • AED 1.1: the price per unit of the FPO
  • 220 million: the maximum number of new units to be issued
  • AED 513,889,872: the initial issued capital of the Fund
  • AED 733,889,872: the increased issued capital following the FPO
  • 7.5%: the annualized yield of the cash dividend
  • 7%: the return delivered by Al Mal Capital REIT since 2023
  • 24 June 2025: the deadline for investors to purchase units to be eligible for the dividend
  • 26 June 2025: the record date for unitholders to be eligible for the dividend
  • 7 July to 25 July 2025: the subscription period for the FPO
  • 8 August 2025: the expected commencement date for trading of the new units on the Dubai Financial Market

Sources:

  • Dubai Investments, "Al Mal Capital REIT Announces Follow-on Public Offering" (June 24)