Dubai Holding has announced the successful completion of the book building and subscription process for the initial public offering of Dubai Residential REIT on the Dubai Financial Market and has set the final offer price at AED1.10 per Offer Unit.
This implies a market capitalisation upon listing of AED14.3bn ($3.9bn) and a gross dividend yield of 7.7 per cent for 2025.
Dubai Residential REIT
The total gross demand reached more than AED56bn ($15bn), resulting in an overall oversubscription of over 26 times at the final offer price.
Reflecting the exceptionally strong demand, the final offer price was set at the top end of the price range, enabling the company to raise AED 2.145bn ($584m) through the IPO.
Amit Kaushal, Group Chief Executive Officer of Dubai Holding, said: “The significant demand for the initial public offering of Dubai Residential REIT from both local and international investors is a powerful endorsement of Dubai Holding’s strategic vision and the strength of our residential leasing portfolio, which has been carefully developed and managed over more than two decades to meet the evolving needs of Dubai’s diverse population.
“This investor confidence speaks not only to the resilience of the UAE’s economic vision and Dubai’s long-term growth trajectory, but also highlights the increasing depth, maturity and global appeal of its capital markets.
“We are confident in the ability of Dubai Residential REIT to deliver sustainable, long-term performance and, as we look ahead, our focus remains firmly on shaping the future of urban living in Dubai and contributing to the city’s continued evolution as a global hub for investment, innovation and high-quality living.”
Malek Al Malek, Group Chief Executive Officer of Dubai Holding Asset Management and Chairman of the Investment Committee of DHAM REIT Management LLC, said: “The strong investor demand clearly signals a growing appetite for stable, income-generating assets in Dubai’s vibrant and mature real estate sector, the core principle upon which the REIT was established.
“With a diversified portfolio comprising 35,700 residential units across multiple segments and supported by near-full occupancy and high retention rates, Dubai Residential has consistently demonstrated its ability to generate sustainable, long-term returns.
“This robust performance firmly positions Dubai Residential REIT as the benchmark for residential leasing in Dubai, reinforcing its role in shaping the future of urban living in the city.”
The Offering comprised a total of 1,950,000,000 Units, representing 15 per cent of Dubai Residential REIT’s issued unit capital, offered by DHAM Investments LLC.
Investors who subscribed through the UAE Retail Offering (First Tranche) will receive an SMS confirmation of their respective allocation on May 26, 2025, with refunds due to commence from the same date.
The completion of the Offering and admission of Units to trading on the DFM is expected to take place on or around May 28.
Dubai Residential REIT intends to adopt a semi-annual dividend distribution policy, making payments in April and September of each year, starting from September 2025.
The REIT announced that the sum of its first two dividend payments, expected to be made in September 2025 and April 2026, will be the higher of:
- (i) AED1.1bn
- (ii) An amount equal to 80 per cent 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
