Dubai Holding Sets IPO Price for Dubai Residential REIT at AED 1.10, Raising AED 2.1 Billion to Become GCC’s Largest Listed REIT

Dubai Holding, through its wholly owned subsidiary DHAM REIT Management LLC (the “Fund Manager”), today announces the successful completion of the book building and subscription process for the initial public offering (“IPO” or the “Offering”) of Dubai Residential REIT on the Dubai Financial Market (the “DFM”) and has set the final offer price at AED 1.10 per Offer Unit.

This implies a market capitalisation upon listing of AED 14.3 billion (USD 3.9 billion) and a gross dividend yield of 7.7% for 2025. The Offering attracted strong demand across both institutional and UAE retail tranches, prompting the Fund Manager to increase the size of the Offering from 12.5% to 15.0% of Dubai Residential REIT's total issued unit capital. The total gross demand reached over AED 56 billion (USD 15 billion), resulting in an overall oversubscription of over 26 times at the final offer price. Reflecting the exceptionally strong demand, the final offer price was set at the top end of the price range, enabling the company to raise AED 2,145 million (USD 584 million) through the IPO.

Amit Kaushal, Group Chief Executive Officer of Dubai Holding, said:

“The significant demand for the initial public offering of Dubai Residential REIT from both local and international investors is a powerful endorsement of Dubai Holding’s strategic vision and the strength of our residential leasing portfolio, which has been carefully developed and managed over more than two decades to meet the evolving needs of Dubai’s diverse population. This investor confidence speaks not only to the resilience of the UAE’s economic vision and Dubai’s long-term growth trajectory, but also highlights the increasing depth, maturity and global appeal of its capital markets.

We are confident in the ability of Dubai Residential REIT to deliver sustainable, long-term performance and, as we look ahead, our focus remains firmly on shaping the future of urban living in Dubai and contributing to the city’s continued evolution as a global hub for investment, innovation and high-quality living.”

Malek Al Malek, Group Chief Executive Officer of Dubai Holding Asset Management and Chairman of the Investment Committee of DHAM REIT Management LLC, said:

“The strong investor demand clearly signals a growing appetite for stable, income-generating assets in Dubai’s vibrant and mature real estate sector, the core principle upon which the REIT was established. With a diversified portfolio comprising 35,700 residential units across multiple segments and supported by near-full occupancy and high retention rates, Dubai Residential has consistently demonstrated its ability to generate sustainable, long-term returns. This robust performance firmly positions Dubai Residential REIT as the benchmark for residential leasing in Dubai, reinforcing its role in shaping the future of urban living in the city.”

The Offering comprised a total of 1,950,000,000 (one billion nine hundred and fifty million) Units, representing 15.0% of Dubai Residential REIT’s issued unit capital, offered by DHAM Investments LLC (the “Selling Unitholder”), a subsidiary of Dubai Holding, and the current sole unitholder of the REIT. Upon listing, the Selling Unitholder will continue to own a majority 85% stake in Dubai Residential REIT.

Investors who subscribed through the UAE Retail Offering (First Tranche) will receive an SMS confirmation of their respective allocation on 26 May 2025, with refunds due to commence from the same date.

The completion of the Offering and admission of Units to trading on the DFM (“Admission”) is expected to take place on or around 28 May 2025, under the ticker symbol "DUBAIRESI" and ISIN "AEE01657D252", subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of admission to listing and trading on DFM.

Dubai Residential REIT intends to adopt a semi-annual dividend distribution policy, making payments in April and September of each year, starting from September 2025. The REIT announced that the sum of its first two dividend payments, expected to be made in September 2025 and April 2026, will be the higher of: (i) AED 1,100 million; and (ii) an amount equal to 80% of profit for the period before changes in fair value of investment property, in respect of its financial results for the year ending 31 December 2025. For the financial results for the year ending 31 December 2026 and thereafter, Dubai Residential REIT intends to distribute at least 80% of profit for the period before changes in fair value of investment property for each accounting period. All dividend distributions remain subject to the approval of Dubai Residential REIT’s board of directors and other provisions of the UAE prospectus.

Citigroup Global Markets Limited, Emirates NBD Capital PSC, and Morgan Stanley & Co. International plc have been appointed as Joint Global Coordinators and Joint Bookrunners (the "Joint Global Coordinators"). Emirates NBD Bank PJSC has been appointed as the Lead Receiving Bank. Abu Dhabi Commercial Bank PJSC, Arqaam Capital Limited acting in conjunction with Arqaam Securities LLC, and First Abu Dhabi Bank PJSC are acting as joint bookrunners (together with the Joint Global Coordinators, the "Banks") for the Offering.

Pursuant to an underwriting agreement entered into between Dubai Residential REIT, the Selling Unitholder, the Fund Manager and the Banks (the "Underwriting Agreement"), the Selling Unitholder will be subject to a lock-up (in connection with the Units) from the date of the Underwriting Agreement up to 180 days after Admission, subject to certain customary carveouts and consent by the Joint Global Coordinators. Dubai Residential REIT will also be subject to a lock-up for the same duration.

In connection with the Offering, the Selling Unitholder will allocate proceeds from the sale of up to 243,750,000 Offer Units to xCube LLC, a DFM-authorised price stabilisation manager appointed by the Fund Manager. These proceeds may be used, in accordance with applicable laws and the DFM Trading Rules, to conduct stabilisation transactions on the DFM. The Banks and their respective directors, officers, employees, agents, and affiliates will not be involved in, responsible for, or benefit from any such transactions, which will be carried out solely by xCube LLC.

Emirates NBD Bank PJSC has been appointed as the Lead Receiving Bank. 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 have also been appointed as Receiving Banks.

For more information about the Offering, please visit: http://ipo.dubairesidential.ae/