Oversubscribed REIT IPO in Dubai

Dubai Residential REIT's IPO has been priced at Dh1.1 per unit, establishing an initial market capitalization of Dh14.3 billion and a gross dividend yield of 7.7% for 2025. The REIT plans to distribute Dh1.1 billion in dividends this year. The offering, which was oversubscribed by over 26 times, saw demand exceeding Dh56 billion, leading to the final offer price being set at the top end of the range and the IPO being upsized from 12.5% to 15%.

The strong demand reflects confidence in Dubai Holding's strategic vision and its residential leasing portfolio, which comprises 21 sought-after communities. The REIT's portfolio has been carefully developed over two decades to meet the needs of Dubai's diverse population. The company aims to deliver sustainable, long-term performance and contribute to Dubai's growth as a global hub.

Investors will receive semi-annual dividend payments starting in September 2025. The 2025 payment will be the higher of either an amount equal to 80% of the profit for the period before changes in fair value of investment property. For 2026 and beyond, Dubai Residential REIT intends to distribute at least 80% of the profit.