Dubai Residential REIT has set the much-anticipated IPO price range on the Dubai Financial Market (DFM), marking a crucial milestone for investors and market participants alike. As one of the region’s foremost residential real estate investment trusts, this move is expected to generate significant interest and potentially reshape the landscape of property investment in the UAE. The offering encompasses a substantial volume of units, representing a key opportunity for both retail and institutional investors to engage with this pioneering venture.
The offer price range has been set between AED 1.07 and AED 1.10 per unit.
The offering consists of 1,625,000,000 units, representing 12.5 percent of the REIT’s issued unit capital, being offered by DHAM Investments LLC, a subsidiary of Dubai Holding.
Dubai Residential REIT Offering Details
The total offering size is projected to be between AED 1,739 million ($473 million) and AED 1,788 million ($487 million), translating to an implied market capitalization at listing of between AED 13.9 billion ($3.8 billion) and AED 14.3 billion ($3.9 billion).
The subscription process commenced on May 13, 2025, and will continue until May 20, 2025. The final offer price is anticipated to be revealed on May 21, 2025, with trading on the DFM slated to begin on May 28, 2025, under the symbol “DUBAIRESI.”
The IPO comprises two tranches: the UAE Retail Offer, which allocates 10 percent of the units (162,500,000), and the Institutional Offering, designated for 90 percent of the units (1,462,500,000).
Retail investors will be guaranteed a minimum allocation of 2,000 units, subject to conditions specified in the prospectus.
Dubai Residential REIT stands out as the GCC’s first pure-play listed residential leasing-focused REIT and is poised to become the largest listed REIT in the region at the time of listing, boasting a gross asset value of AED 21.63 billion.
The REIT manages 35,700 residential units across Dubai, solidifying its status as one of the largest residential real estate owners and operators in the emirate. The portfolio is diversified across various locations, property types, and price segments.
The REIT plans to adopt a semi-annual dividend distribution policy, with payments scheduled for April and September each year, starting in September 2025.
Both the REIT and the offering have obtained Shariah compliance certification, with fatwas issued by the Shariah Supervision Committee of Dubai Residential REIT and the Internal Shariah Supervision Committee of Emirates NBD Bank PJSC.
For the initial two dividend payments (September 2025 and April 2026), the REIT anticipates distributing the higher of AED 1,100 million or 80 percent of profit for the period before adjustments related to changes in the fair value of investment properties for the year ending December 31, 2025.
The offer price range suggests a gross dividend yield of 7.9 percent at the lower end of the price range and 7.7 percent at the upper end for the year concluding December 31, 2025.
Citigroup Global Markets Limited, Emirates NBD Capital PSC, and Morgan Stanley & Co. International plc have been enlisted as Joint Global Coordinators and Joint Bookrunners, while Emirates NBD Bank PJSC acts as the Lead Receiving Bank.
The selling unitholder is subject to a lock-up period of 180 days following admission, adhering to certain customary carveouts and with consent from the Joint Global Coordinators. Dubai Residential REIT will also abide by the same lock-up duration.
Additionally, the selling unitholder will designate proceeds from the sale of up to 243,750,000 offer units to xCube LLC, a DFM-authorized price stabilization manager, which might execute stabilization transactions on the DFM according to applicable laws and DFM Trading Rules.
The essential dates for the IPO include:
- Close of Book Building: May 20, 2025
- Final Offer Price Announcement: May 21, 2025
- Allocation of Offer Units to the First Tranche: May 26, 2025
- Refunds: May 26, 2025
- First Day of Trading: May 28, 2025
Emirates NBD Bank PJSC has been chosen as the Lead Receiving Bank, joined by Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Al Maryah Community Bank LLC, Commercial Bank of Dubai, Emirates Islamic Bank PJSC, First Abu Dhabi Bank PJSC, and Mashreq Bank PSC, all appointed as Receiving Banks.