Press Release

JCR-VIS Reaffirms REIT Ratings of Dolmen City REIT (the Scheme)

Karachi, July 25, 2017: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed Real Estate Investment Trust (REIT) Rating of Dolmen City REIT (DCR) at ‘RR1’ (REIT Rating One). Outlook on the assigned ratings is ‘Stable’ and the funds rated in “RR1” Category are judged to be of highest investment quality. Previous rating was announced on 25th July 2016.

DCR is a perpetual, listed, close-end rental REIT. It was established in January 2015 under Trust deed between Arif Habib Dolmen REIT Management Limited, as the REIT Management Company and Central Depository Company of Pakistan Limited (CDC) as the Trustee of the fund. The fund received approval of the scheme on 29th May 2015 and subsequently was listed on the Pakistan Stock Exchange on 26th June 2015. DCR is governed under the REIT Regulations 2015.

The assigned rating incorporates high level of occupancy of the REIT Property, year on year increase in footfall, diversified tenant profile and prominent local and international brands as tenants. The prestigious standing of the property is based on its geographical location, provision of amenities, established quality of services and maintenance of office and mall space.

There was a minimal increase in occupancy levels which has led the same to be around 99.62% at end 9MFY17. This coupled with annual escalation of rentals has increased revenues as well as profit available for distribution and has exceeded the projections.

Valuation of the REIT property has increased considerably since the last review on the back of ‘Income Capitalization’ approach, which is reflected in the Net Asset Value of the fund.

For further information on this rating announcement, please contact the undersigned (Ext: 306) at 021-35311861-70 or fax to 021-35311873.

Faryal Faheem
Deputy CEO

Applicable Rating Criteria: Real Estate Investment Trusts (January 2015)

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2017 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited