Acorn Holdings, the developer behind the popular student accommodation brand Qwetu, has delivered a remarkable financial performance in the first half of 2025, reporting a 32 percent growth in after‑tax profit to Ksh 457 million.
This upward shift reflects continued momentum across its Real Estate Investment Trusts (REITs) and underscores Acorn’s ability to capitalise on high demand in Kenya’s purpose-built student accommodation sector.
The company attributes the growth to higher rental income, sustained occupancy levels, and strategic acquisitions. The Acorn Student Accommodation Income REIT (ASA I‑REIT), which manages operational Qwetu and Qejani properties, recorded particularly strong results.
Despite pressure from macroeconomic factors, rental escalation implemented in early 2025 and tight cost control enhanced margins, helping to support the surge in profit.
Acorn’s expanding portfolio continues to be a key driver. As of mid-2025, the group oversees over 21,000 student beds across 11 properties, including recent additions like Qwetu Hurlingham and the large-scale Aberdare Heights II development.
The high occupancy rate averaging above 85 percent in the I‑REIT assets has ensured predictable income streams and investor confidence.
Complementing the income arm, the ASA Development REIT (ASA D‑REIT) continues to deliver value through ongoing projects and asset maturation. The staggered transfer of completed assets into the Income REIT has boosted the overall profitability and strengthened the balance sheet.
These transactions also enabled early redemption of high-cost debt instruments such as the Ksh5.7 billion Green Bond, reinforcing Acorn’s focus on lowering financing costs.
Investors have responded positively. The ASA I‑REIT has declared its eighth consecutive dividend payout, while the D‑REIT has ramped up distributions, reflecting improved earnings visibility and growing cash flows.
Management has signaled an ongoing strategy of refinancing expensive debt with cheaper long-term facilities to further enhance yields and support expansion plans.
Looking ahead, Acorn plans to diversify its tenant base by enrolling TVET students and expanding into new university towns across Kenya. The firm is also floating plans for a third REIT targeting young urban professionals, signalling a shift from student-only housing to broader urban residential markets
Meanwhile, sustainability remains core to its model: all developments meet IFC EDGE green building standards, reducing environmental impact and attracting ESG-focused investors.
By mid‑2025, the combined Net Asset Value (NAV) of Acorn’s REITs has exceeded Ksh 26 billion, up from around Ksh 20 billion at the end of 2023, a testament to growing investor confidence and asset appreciation.
As Qwetu continues to meet the growing demand for secure, affordable student housing, the group appears well‑positioned to sustain its growth trajectory and deliver enhanced returns to its stakeholders.
Acorn’s 32 percent increase in first‑half profit to Ksh 457 million reinforces its leadership in Kenya’s purpose‑built student accommodation segment and reflects the strength of its scalable REIT‑based business model amid broadening market opportunities and prudent financial management.
Written By Ian Maleve
