Business Standard

DCCDL office rent income up 14% to Rs 801 cr; retail assets revenue up 54%

Realty major DLF's rental arm DCCDL has reported a 14 per cent increase in office rental income to Rs 801 crore and 54 per cent rise in revenue from retail properties to Rs 184 crore

DLF

Photo: Reuters

Press Trust of India New Delhi
Realty major DLF's rental arm DCCDL has reported a 14 per cent increase in office rental income to Rs 801 crore and 54 per cent rise in revenue from retail properties to Rs 184 crore during the quarter ended September 30.
DLF Cyber City Developers Ltd (DCCDL) is a joint venture between DLF Ltd and Singapore's sovereign wealth fund GIC. DLF has nearly 67 per cent stake in the JV firm, while GIC has the remaining.
In an investors presentation for the July-September quarter, DLF has also informed about the operational and financial performance of its JV firm DCCDL, which holds the bulk of its rent-yielding office and retail real estate portfolio. Some commercial properties are still being held by the parent company DLF.
DCCDL's office rental income grew 14 per cent to Rs 801 crore during the second quarter of this fiscal, from Rs 701 crore in the year-ago period. Its retail revenue rose 54 per cent to Rs 184 crore from Rs 120 crore.
Total rental income rose 20 per cent to Rs 986 crore during July-September period of 2022-23 fiscal, from Rs 821 crore in the year-ago period.
"Rental income grew by 20 per cent year-on-year (Y-o-Y); driven by strong rebound in retail," the presentation said.
DCCDL has an operational portfolio of 39.6 million square feet currently. It is constructing another 5.3 million square feet area.
On the financial front, the DCCDL's total revenue increased 22 per cent to Rs 1,369 crore in the second quarter of this fiscal from Rs 1,123 crore in the year-ago period. Net profit rose 54 per cent to Rs 355 crore from Rs 231 crore.
Its net debt rose to Rs 19,261 crore at the end of the September quarter, from Rs 18,803 crore as on June 30, 2022.
On the outlook for the office portfolio, DCCDL said that occupancy levels are inching upwards. "Occupiers taking longer to finalize workspace requirements; Work from office continues to improve; occupier's attendance currently at around 67 per cent (pre-COVID)," the presentation said.
In retail properties, DCCDL said footfalls exhibiting improvement month-on-month and are at around 92 per cent of pre-COVID level.
"Consumption across segments continues to witness healthy growth; Inflation continues to be in the higher range; may lead to marginal impact on discretionary spendings. Business continues to exhibit double-digit growth; Sales higher compared to pre-COVID levels," the presentation said.
DLF is India's largest real estate company in terms of market capitalisation. It has developed more than 153 real estate projects covering 330 million square feet.
The company has 215 million square feet of development potential across the residential and commercial segments.
DLF is primarily engaged in the business of development and sale of residential properties (development business), and the development and leasing of commercial and retail properties (annuity business).
In December 2017, DLF had formed a joint venture with GIC after its promoters sold their entire 40 per cent stake in DCCDL for nearly Rs 12,000 crore. This deal included sale of 33.34 per cent stake in DCCDL to GIC for about Rs 9,000 crore and buyback of remaining shares worth about Rs 3,000 crore by the DCCDL.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Oct 26 2022 | 3:57 PM IST

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