Dubai Residential REIT

In order to obtain and comply with Dubai Residential’s REIT status under applicable UAE law and CMA regulations, Dubai Residential will be required to meet a minimum distribution test for each year that it is a REIT. This minimum distribution test requires Dubai Residential to distribute at least 80% of the Group’s “annual net profits”20.

Dubai Residential’s ability to make distributions is dependent on a number of factors, including the availability of distributable reserves, its capital expenditure plans and other cash requirements in future periods, and there is no assurance that Dubai Residential will make distributions or, if a distribution is paid, what the amount of such distribution will be. A failure by Dubai Residential to comply with the minimum distribution test could result in it losing its REIT status.

Any level or payment of distributions in excess of the minimum prescribed amount will depend on, among other things, future profits and the business plan of the Group, at the discretion of the Board.

Subject to the foregoing, Dubai Residential intends to adopt a semi-annual dividend distribution policy, making payments in April and September of each year, starting from September 2025 (subject to Board approval).

In respect of the financial results for the year ending 31 December 2026 and thereafter, Dubai Residential intends to distribute at least 80% of profit for the period before changes in fair value of investment property for each accounting period (subject to Board approval).