Dolmen City REIT Rental Rating Reaffirmed at ‘AAA (rr)’

Karachi: VIS Credit Rating Company Limited has reaffirmed the Rental REIT rating of Dolmen City REIT at ‘AAA (rr)’ (Triple A Rental REIT), maintaining a stable outlook. This rating reflects the highest capacity to maintain stable rental income with negligible risk factors affecting the value of REIT assets in the foreseeable future.

According to VIS Credit Rating Company Limited, Dolmen City REIT is a perpetual, listed, closed-end, Shariah-compliant rental REIT scheme managed by Arif Habib Dolmen REIT Management Limited. Situated in the Clifton area, the Scheme includes Harbour Front, Dolmen Mall, and a parking facility. It generates rental income from its investment property, adhering to Shari’ah principles, and distributes this income to unitholders as dividends.

The reaffirmed rating takes into account DCR’s unleveraged capital structure, with no debt on its books, and the strong profiles of both Dolmen and Arif Habib Groups, known for their financial stability and extensive real estate experience. The rating is supported by DCR’s sustained high occupancy rates, which have been close to 97.5% since its inception in 2015, aided by quality services, amenities, and strategic location.

During the review period, DCR saw a rental income increase of over 12%, attributed to higher occupancy levels and the addition of new tenants. The diversified income streams from the shopping mall and office spaces have been bolstered by new tenant onboarding and customer-focused marketing efforts, which have maintained strong footfall. The real estate portfolio benefits from credible tenants and multi-year lease commitments, ensuring predictable rental income. Looking ahead, maintaining financial and operational stability will be crucial for future ratings.

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