Dubai Holding, a prominent investment conglomerate owned by the emirate’s ruler, has announced the Initial Public Offering (IPO) of its real estate investment trust (REIT), Dubai Residential REIT, on the Dubai Financial Market (DFM). This marks the first IPO in Dubai for the year 2025 and is anticipated to be the largest listed REIT in the GCC region upon listing, boasting a gross asset value of AED 21.63 billion (approximately $5.89 billion).
The offering comprises 1,625,000,000 units, representing 12.5% of the REIT’s issued unit capital. DHAM Investments LLC, a wholly-owned subsidiary of Dubai Holding and the current sole unitholder, is the selling entity. The subscription period for the IPO is scheduled to run from May 13, 2025, to May 20, 2025, with the final offer price expected to be announced on May 21, 2025. Trading of the REIT units on the DFM under the ticker symbol “RESI” is anticipated to commence on or around May 28, 2025.
Dubai Residential REIT stands out as the GCC’s first pure-play listed REIT focused on residential leasing. Its portfolio encompasses a diverse range of 35,700 residential units spread across 21 strategically located communities in Dubai. These properties cater to various market segments, including premium, community, affordable, and corporate housing, serving over 140,000 residents. The integration of the residential portfolios of Nakheel and Meydan under Dubai Holding in the previous year significantly enhanced Dubai Residential’s position as one of the region’s largest residential leasing platforms.
The REIT intends to adopt a semi-annual dividend distribution policy, with payments planned for April and September each year, commencing in September 2025. For the initial two dividend payments (September 2025 and April 2026), the total distributed amount is expected to be the higher of AED 1.1 billion or 80% of the profit for the period before changes in the fair value of investment property. For subsequent financial years, the REIT aims to distribute at least 80% of its profit (before fair value changes), subject to board approval.
Dubai Residential REIT has demonstrated strong financial performance. For the financial year ending December 31, 2024, the REIT reported a revenue of AED 1.793 billion and a pro forma profit of AED 2.640 billion. Its average occupancy rate has steadily increased from 93% in 2022 to an impressive 97% by December 2024, with a high tenant retention rate of 87% in 2024.
The IPO presents a unique opportunity for investors to gain exposure to Dubai’s thriving residential real estate market through a Shariah-compliant investment vehicle. The REIT’s diversified portfolio of income-generating assets offers the potential for regular dividends and long-term capital appreciation, without the complexities associated with direct property ownership and management.
The offering includes two tranches: the UAE Retail Offer (10% of the offer units) for retail investors and eligible entities with a National Investor Number (NIN) on the DFM, and the Institutional Offering (90% of the offer units) for qualified institutional investors outside the United States.
The listing of Dubai Residential REIT is a strategic move by Dubai Holding to unlock value and further deepen Dubai’s capital markets. The REIT benefits from Dubai Holding’s extensive real estate ecosystem and its position as a leading master developer in the emirate. Following the IPO, Dubai Holding, through DHAM Investments LLC, will continue to hold a significant 87.5% stake in the REIT, underscoring its long-term commitment to this asset class.
Joint global coordinators for the IPO include Citigroup, Morgan Stanley, and Emirates NBD Capital, with xCube LLC acting as the price stabilization manager.
Key Highlights:
- Dubai Holding has announced the IPO of Dubai Residential REIT, the GCC’s first and largest pure-play listed residential leasing-focused REIT, on the Dubai Financial Market (DFM).
- The IPO offers 1.625 billion units (12.5% stake) with a subscription period from May 13 to May 20, 2025, and trading expected to begin around May 28, 2025, under the ticker “RESI”.
- Dubai Residential REIT manages 35,700 residential units across 21 communities in Dubai, with a gross asset value of AED 21.63 billion and a high occupancy rate of 97% in 2024.
- The REIT intends to distribute dividends semi-annually, with the first two payments expected to total at least AED 1.1 billion or 80% of adjusted profits.
- This IPO provides investors with a Shariah-compliant opportunity to invest in Dubai’s robust residential rental market.