United Arab Emirates: Dubai Residential REIT, a shariah-compliant real estate investment trust, said it has won approval from the company's shareholders at the Annual General Meeting for the distribution of AED550 million ($150 million) cash dividends for H2 2025, thus reflecting its strength in the REIT’s portfolio and confidence in Dubai’s residential leasing market.

One of the largest owners and operators of residential real estate, the Dubai Residential REIT is the GCC's first pure-play residential leasing REIT managed by DHAM REIT Management.

Through its portfolio, the REIT sets the benchmark for the city’s residential real estate market, operating one of the largest owned and operated residential leasing portfolios in the UAE.

Its portfolio comprises 21 integrated communities with over 35,700 homes serving more than 140,000 residents, spanning four key segments: Premium, Community, Affordable, and Corporate Housing.

The cash dividends being distributed are equivalent to 4.2 fils per unit, thus bringing the total payout for the year ended December 31, 2025 to AED1.1 billion, said the statement from the Dubai group.

The amount is equivalent to 8.5 fils per unit, implying a gross dividend yield of 7.7% on IPO price and accounting to 86% of net profit before changes in the fair value of investment property, it stated.

Nabil Mohammad Ramadhan, Chairman of the Board of Directors for Dubai Residential REIT, said: "The approval of the AED550 million cash dividend for the second half of 2025 is an important outcome for unitholders and reflects strength in the REIT’s portfolio, operating model and confidence in Dubai’s residential leasing market."

With total cash dividends of AED1.1 billion for 2025, we have delivered in line with the distribution guidance provided at the time of listing.

"Looking ahead, we remain committed to strong governance, prudent leverage, and balanced capital allocation, while continuing to progress our committed growth pipeline and maintain our distribution policy of paying out at least 80% of our net profit," he stated.

Ramadhan said Dubai’s real estate and residential leasing markets remain supported by diversified demand and a well-established regulatory framework, reinforcing confidence in their resilience.

"Against this backdrop, the REIT’s long-term fundamentals remain stable, underpinned by a diversified portfolio, high occupancy, recurring rental income and disciplined balance sheet management," he noted.

Last year, the Dubai Residential REIT had delivered strong results, reporting revenue of AED1.95 billion, up 9% year-on-year, supported by portfolio occupancy of 98.3% and tenant retention of 88%.

Net Profit before changes in the fair value of investment property increased by 14.5% to AED 1.28 billion, reinforcing the strength of underlying earnings and cash generation supporting the dividend, he added.