PACRA Assigns Initial Entity Ratings to ISE Towers REIT Management Company Limited - AsiaNet-Pakistan

PACRA Assigns Initial Entity Ratings to ISE Towers REIT Management Company Limited

January 8, 2021 | | Share:

Lahore, January 08, 2021 (PPI-OT): ISE Towers REIT Management Company Ltd (or “The Company”) is licensed as a Non-Banking Finance Company (NBFC) under Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003. The diversified share holding pattern of the Company comprises of 253 shareholders (Corporates, Banks, DFIs, Insurance Companies, Modarabas, pension funds and others). The assigned ratings incorporates the sound corporate governance, experienced management team, adequate control environment and structured investment processes.

The compliance function ensures adherence with all applicable internal and external rules and regulations. The Company is deriving its core income from its dominating asset “ISE Towers” which is enjoying almost 100% occupancy level. The multi-storey building is situated in the prime location Blue Area, Islamabad. The Company is planning to convert the ISE Towers into REIT Scheme. The project has achieved significant progress, in shape of obtaining requisite approvals under REIT Regulation, 2015 and REIT scheme is likely to be launched in calendar year 2021.

The funds generated from this scheme will be utilized to undertake new REIT projects. The profitability of the company is growing at a moderate pace and reported at PKR 338mln for FY20 (SPLY: PKR 191mln). Rental relief were given to the tenants due to economic slowdown amid COVID-19 pandemic. The business risk of the company is supported by high profile tenants, economic recoveries and improving COVID-19 situation in the country.

The Company has zero leveraging and liquidity position remains comfortable. The equity stood at ~PKR 5.7bln at end Jun’20 (SPLY: ~PKR 5.3bln). The ratings are dependent on the Company’s aptness to uphold its business and financial risk profile under the prevailing volatile macroeconomic-environment. Sustenance of growth momentum is imperative.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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