The formal start of the subscription period for Al Mal Capital REIT’s Follow-on Public Offering (FPO), the first real estate investment trust (REIT) listed on the Dubai Financial Market (DFM), was announced Monday.
The Securities and Commodities Authority (SCA)-approved FPO proposes to issue up to 220 million additional units at a price of Dh1.125 each, including a Dh0.025 subscription fee, to raise up to Dh242 million. Retail and institutional investors in the UAE and GCC are welcome to participate in the FPO; the subscription period is July 7–25.
With 100% portfolio occupancy, steady lease rents, and a Weighted Average Unexpired Lease Term (WAULT) of around 20 years, Al Mal Capital REIT has had a solid track record, delivering a 7% dispersed return since 2023. The REIT continues to aim to provide investors with steady yields of approximately 7%.
In order to further improve the REIT’s development and diversification, the strategic capital acquired through the FPO will be utilised to expand its portfolio by purchasing more income-producing properties in robust industries including healthcare, education, and mission-critical industries. To preserve their ownership stake and prevent dilution, these investors could subscribe for at least 39% of their existing shares. A Minimum Guaranteed Allocation (MGA) of up to 2,000 units per qualified new subscriber will be included in the secondary distribution of unsubscribed units, contingent on availability and request.
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