Al Mal Capital REIT Launches Follow-On Offering, Targets 7% Returns

Al Mal Capital REIT has opened its follow-on public offering (FPO) to retail and institutional investors across the UAE and GCC, with subscriptions available until July 25, 2025. (A follow-on offering refers to when a publicly listed company issues additional shares to investors.)

Since 2023, the REIT has consistently delivered a 7% distributed return, backed by a real estate portfolio that currently enjoys 100% occupancy and stable lease rentals. The weighted average unexpired lease term across its properties is approximately 20 years, reinforcing the portfolio’s long-term stability.

“The REIT continues to target consistent returns of approximately 7% for investors,” said Al Mal Capital.

The proceeds from the offering will be used to acquire additional income-generating assets in resilient sectors such as healthcare, education, and mission-critical industrials.

Priority Allocation for Existing Unitholders

Existing investors, as of the record date of June 26, will receive priority allocation in the offering. These unitholders are eligible to subscribe to approximately 39% or more of their current holdings to maintain their ownership percentage and avoid dilution.

A secondary allocation of any unsubscribed units will include a Minimum Guaranteed Allocation (MGA) of up to 2,000 units per eligible new subscriber, subject to availability and investor demand.

Allocation and Trading Timeline

The newly issued units are expected to be allocated between August 1 and 8, 2025, with trading scheduled to commence between August 8 and 15.