Earnings Report

Dubai Residential REIT

H1 26

1. Company Overview & Earnings Context

Dubai Residential REIT is the UAE's largest listed residential real estate investment trust (REIT), focused on generating recurring rental income from a diversified portfolio of residential communities across Dubai. Managed by DHAM REIT Management LLC and backed by Dubai Holding, the REIT owns a large portfolio of income-generating residential assets and distributes a significant portion of its earnings to unitholders.

For H1 2026, Dubai Residential REIT delivered another strong operational performance, with rental revenue exceeding AED 1 billion and continued growth in operating profit. The REIT also expanded its investment property portfolio through strategic acquisitions while benefiting from resilient rental demand and higher market rental rates across Dubai's residential sector.

2. Financial Performance Snapshot

Revenue: AED 1.04 Billion
Gross Profit: AED 849 Million
Operating Profit: AED 742 Million
Profit Before Fair Value Gains: AED 716 Million
Fair Value Gain on Investment Property: AED 373 Million
Net Profit: AED 1.09 Billion
Basic Earnings Per Unit (before fair value gains): AED 0.06
Basic Earnings Per Unit: AED 0.08

Compared with H1 2025:

Revenue increased from AED 958 million to AED 1.04 billion.
Gross profit increased from AED 728 million to AED 849 million.
Operating profit increased from AED 650 million to AED 742 million.
Profit before fair value gains increased from AED 622 million to AED 716 million.
Net profit declined from AED 1.92 billion to AED 1.09 billion, primarily due to a lower fair value gain on investment properties compared with the exceptionally strong prior-year period.

3. Operational Highlights & Key Metrics

Investment Property Portfolio: AED 25.17 Billion
Total Assets: AED 26.00 Billion
Net Asset Value (NAV): AED 22.58 Billion
NAV per Unit: AED 1.74
Cash & Bank Balances: AED 746 Million
Investment Property Additions: AED 1.26 Billion
Related Party Property Acquisitions: AED 1.14 Billion
Fair Value Gain on Investment Properties: AED 373 Million
Dividend Paid During H1 2026: AED 550 Million

4. Key Performance Drivers

The REIT's performance was driven by continued growth in rental income, resilient occupancy across its residential portfolio and improved operating profitability. During the period, Dubai Residential REIT expanded its investment property portfolio through AED 1.26 billion of acquisitions, including AED 1.14 billion acquired from a related party, while higher market rental rates contributed to a AED 373 million fair value gain on investment properties. These factors supported stronger underlying operating earnings despite lower reported net profit compared with the exceptional property revaluation gains recorded in the prior-year period.

5. Outlook & Forward Guidance

Management remains focused on growing recurring rental income through disciplined portfolio expansion, proactive asset management and selective acquisitions. Backed by Dubai Holding, the REIT continues to benefit from strong fundamentals in Dubai's residential market and remains well positioned to deliver sustainable long-term cash flows and attractive distributions to unitholders.

6. Investor Takeaway

Dubai Residential REIT delivered another solid first-half performance, with recurring rental income, operating profit and net asset value continuing to grow. Although reported net profit declined due to lower property revaluation gains compared with last year, the REIT's underlying operating performance remained strong, supported by portfolio expansion, resilient rental demand and a high-quality portfolio of income-generating reside