Press Release

REIT Rating of Dolmen City REIT (the Scheme)

Karachi, October 18, 2019: VIS Credit Rating Company Limited (VIS) has changed its notations for the Real Estate Investment Trust (REIT) Rating scale in order to standardize all scales used by VIS for the assessment of various types of mutual funds. The REIT rating of Dolmen City REIT (DCR) has accordingly been assessed at ‘AAA(rr)’ (Triple A Rental REIT) on the new scale (the new scale may be found in the relevant methodology available on VIS’ website). The REIT rating of ‘AAA(rr)’ (Triple A Rental REIT) denotes highest degree of stability in NAV. Risk is negligible with very low sensitivity to changing economic conditions. Previous rating action was announced on September 17, 2018.

The assigned rating takes into account the profile of Dolmen and Arif Habib Groups, which feature as shareholders in International Complex Projects Limited and REIT Management Company, with both these groups being financially sound and having experience in the real estate sector. The assigned rating also factors in location of the REIT property comprising Harbour Front (office space), Dolmen City Mall (retail mall) and ancillary parking space. Rating also reflects continued increase in footfall, high occupancy levels, diversified tenant profile and prominent local & international brands and corporations as tenants. Tenant risk, as manifested in concentration levels, is high in case of Harbor Front. Although client concentration is considered high, comfort is drawn from strong financial profile of clients.

Aggregate occupancy level of DCR posted an increase and reported at 98.46% at end-March’2019; 100% occupancy was noted at Harbour Front while occupancy at Dolmen City Mall was 97.7%. Rental income generated has depicted growth on a quarter-on-quarter basis based on higher occupancy levels and increase in rentals, thereby exceeding projections. Going forward, profitability is projected to continue to grow based on rent escalations. Moreover, given the ‘Income Capitalization Approach’ used for valuation of subject property, where value of the same is directly related to growth in rentals, fair value adjustment is also projected to grow. In the backdrop of high interest rate scenario, ability of the fund to maintain competitive returns will remain a key rating driver.

For further information on this rating announcement, please contact the undersigned (Ext: 207) or Mr. Talha Iqbal (Ext: 213) at 021-35311861-70 or fax to 021-35311873.

Jamal Abbas Zaidi

Applicable Rating Criteria: Real Estate Investment Trusts (October 2019)

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (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.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.VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited