Dubai Holding announced today its intention to launch an initial public offering (IPO) for the real estate investment fund Dubai Residential REIT on the Dubai Financial Market (DFM). Dubai residential REIT is a Shariah-compliant income-generating closed-ended real estate investment fund under establishment and one of the largest owners and operators of residential real estate in Dubai.
DHAM Investments LLC, a subsidiary of Dubai Holding, is currently the sole unitholder of Dubai Residential REIT and is offering 1.625 billion shares in the IPO, representing 12.5 percent of Dubai Residential REIT’s issued unit capital.
“The decision to launch the IPO of Dubai Residential REIT marks a natural evolution in our story, offering investors a unique opportunity to participate in the GCC’s largest and first pure-play listed residential leasing-focused REIT. With a diversified portfolio valued at over AED21 billion, this milestone enables us to expand our impact, deliver sustainable unitholder returns, and continue shaping the future of urban living in Dubai,” stated Malek Al Malek, group CEO of Dubai Holding Asset Management and chairman of the investment committee of DHAM REIT Management LLC.
Trading to begin on May 28
The offering subscription period is expected to run from May 13 to 20. Admission of units to trading on the DFM is anticipated on or around May 28.
The Shariah Supervision Committee of Dubai Residential REIT has issued a fatwa confirming that, in its view, both the REIT and the pffering are compliant with Shariah principles. The Internal Shariah Supervision Committee of Emirates NBD Bank PJSC has also issued a fatwa confirming the compliance.
“The Dubai Residential REIT provides investors with a straightforward and economical path to invest in premier, income-generating residential real estate assets across the city, without the complexities of direct property ownership and management. This opportunity is designed to yield regular dividends and offers the potential for capital growth, portfolio diversification, inflation hedging and the assurance of a Shariah-compliant investment framework,” stated Ahmed Al Suwaidi, managing director of DHAM REIT Management LLC.
GCC’s largest listed REIT
Dubai Residential REIT is the GCC’s first pureplay 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 of AED21.63 billion, almost double the combined GAV of the five largest REITs in the region.
The REIT manages 35,700 residential units strategically positioned in key areas across Dubai, making it one of the largest residential real estate owners and operators in Dubai and the benchmark for residential real estate in the Emirate.
Dubai Residential REIT includes a diversified portfolio spread across multiple locations, property types and price segments through a range of multifamily and single-family offerings that cater to the broad and growing residential needs of Dubai residents across varying income levels.
It generates stable and resilient operating margins and cash flows underpinned by its well-balanced tenant mix, comprising 43 percent corporate tenants and 57 percent individual tenants by units for the year ended December 31, 2024.
“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,” stated Amit Kaushal, group CEO of Dubai Holding.
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Dubai Residential REIT to adopt semiannual dividend distribution policy
Dubai Residential REIT intends to adopt a semiannual 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 the higher of AED 1,100 million and an amount equal to 80 percent of profit for the period before changes in fair value of investment property, in respect of its financial results for the year ending December 31, 2025, subject at all times to board approval.
In respect of the financial results for the year ending December 31, 2026 and thereafter, Dubai Residential REIT intends to distribute at least 80 percent of profit for the period before changes in fair value of investment property for each accounting period, subject to board approval.
