Markaz: Markaz Real Estate Fund achieves total return of 9.7% in 2025

Kuwait Financial Centre "Markaz" closed 2025 with positive performance for the Markaz Real Estate Fund, delivering a total return of 9.7%, comprised of 4.7% from cash distributions and 5.0% from growth in the capital value of its assets.

During 2025, the Fund recorded net profits of KWD 7.2 million, equivalent to 132.4 fils per unit, supported by active fund management, strong operating performance across its real estate portfolio, stable rental income, and the realization of capital gains from the revaluation and sale of certain assets.

By the end of 2025, assets under management for the Markaz Real Estate Fund reached approximately KWD 81.1 million. The Fund also continued to maintain stable occupancy rates and high-quality rental cash flows, which was reflected positively in the returns achieved.

As part of its commitment to sustainability and the application of best environmental practices, the Fund announced that Al Nada Residential Tower has officially received LEED Gold certification, in recognition of the building’s efficiency in energy and water consumption, indoor environmental quality, and adherence to sustainable construction standards. This contributes to lowering operating costs, enhancing the long-term value of the asset, and aligning with local and global responsible investment trends.

As one of the early real estate funds in the State of Kuwait, the Markaz Real Estate Fund benefits from a long performance record exceeding 24 years, with an annual internal rate of return of 7.7% since inception, alongside regular monthly cash distributions. This reflects the strength of its business model and its ability to generate stable returns across different economic cycles. The Fund is managed in accordance with Sharia principles and is available for investment to all residents in the State of Kuwait of all nationalities, under a comprehensive regulatory framework with high standards of governance and transparency.

Stable returns and a forward-looking outlook

On this occasion, Abdulrahman Sulaiman Al Sanad, MREF Executive Committee Member, stated: "The 2025 results reflect the effectiveness of the Fund’s strategy in achieving a strong balance between regular cash distributions and growth in the capital value of assets, through professional management of a diversified real estate portfolio within the Kuwaiti market. This performance demonstrates the Fund’s ability to meet the expectations of investors seeking stable periodic income and balanced growth, particularly amid market volatility."

Al Sanad added: "We continue to focus on improving operational performance and enhancing asset efficiency to deliver sustainable long-term value for our investors, within a Sharia-compliant investment framework and a disciplined investment approach centered on maximizing value from existing assets and leveraging selective opportunities that enhance portfolio quality and long-term returns. The Fund also intends to continue improving asset efficiency and managing capital with flexibility, supporting the sustainability of cash distributions and keeping pace with developments in the local real estate sector."

In his assessment of the real estate sector, Al Sanad noted that the sector is witnessing promising opportunities in housing and in the investment segment in the State of Kuwait, driven by growing infrastructure investments and structural developments that are reshaping these segments. He added that the next phase will feature a key focus among institutional investors and family businesses with large real estate portfolios on restructuring their portfolios to be more future-ready, and on unlocking value through reorganization, including separating the role of the investor from the role of the asset manager, which enhances operational efficiency and improves the quality of long-term returns.

Investment opportunities and professional management

Through its real estate fund, Markaz continues to offer income-generating real estate investment opportunities, supported by monthly cash distributions and a flexible, liquid investment structure that enables investors to build their positions gradually without the operational challenges associated with direct property ownership. The Markaz Real Estate Fund is overseen by an integrated governance ecosystem that includes independent auditors, a custodian, an investment controller, and a registrar, reducing operational risks and strengthening investor confidence.

Markaz reaffirms its commitment to continuing the development of its real estate products and strengthening the position of the Markaz Real Estate Fund as one of the leading income-generating real estate funds in the State of Kuwait. Investors may subscribe to the Fund through Markaz, or through Gulf Bank in its capacity as the Fund’s distributor, providing easier accessibility and aligning with the needs of investors seeking flexible investment solutions.

Key performance indicators of the Markaz Real Estate Fund for 2025

• Total return: 9.7%
• Cash distributions: 4.7%
• Growth in capital value: 5.0%
• Net profits: KWD 7.2 million
• Unit earnings: 132.4 fils
• Assets under management: KWD 81.1 million
• Track record exceeding 24 years

Important information (QR Code Ad to MREF Website page)

•    Fund Manager: Kuwait Financial Centre K.P.S.C. "Markaz", Kuwait City, Mirqab, Al Sour Street, Al Shaya Tower, Floor 8, Tel: +965 2224 8000, P.O. Box 23444, Safat 13095, State of Kuwait
•    Fund Administrative Board Members: Ghazi Al-Osaimi, Milad Elia, Khaled Al-Mubaraki, Abdulrahman Sulaiman Al Sanad
•    To obtain a copy of the Articles of Association, Prospectus, and the Fund’s financial reports, please visit: www.markaz.com

Disclaimer (QR Code Ad)

This announcement has been prepared for promotional purposes and has been approved by Kuwait Financial Centre “Markaz”. No material information relating to the investment referred to herein has been omitted. Investments in the Fund may be exposed to risks arising from changes in market conditions. There is no guarantee or assurance that the investment will generate any returns.

Accordingly, potential investors should conduct their own analysis and research, and consult their financial, legal, tax, audit and other professional advisers when making investment decisions or considering any strategy discussed in this content. Investors should also understand that such an investment carries a high degree of risk, including the risk of losing the principal invested, and that distribution levels cannot be predicted or guaranteed.

Past performance is not necessarily indicative of, and does not necessarily predict, future performance. The Fund’s net asset value is variable and may decrease or increase. Please review the subscription prospectus and all Fund documents to understand the risk factors associated with this investment, as well as the investment methodology and operations, before investing in the Fund.