Dolmen City REIT’s profit declines 18% to Rs2.28b

Fall comes due to notable drop in fair value of investment property

KARACHI: Dolmen City REIT’s profit declined 18% to Rs2.28 billion in the half-year ended December 31, 2016 due to a notable drop in fair value of investment property, according to a bourse filing on Monday.

It had booked a profit of Rs2.77 billion in the same half of the previous year.

Accordingly, earnings per share fell to Rs1.03 in the July-December period of 2016, down from Rs1.25 in the corresponding period of the previous year.

Its share price decreased 1.45%, or Rs0.16, to Rs10.81 on Monday with a turnover of 472,000 shares.

According to the profit/loss accounts, change in fair value of investment property stood at Rs1.02 billion, which is 39% lower than Rs1.69 billion in the corresponding period.

Profit before change in fair value of investment property stood at Rs1.25 billion, which is 16% higher than Rs1.08 billion. The net profit is the sum of profit before change in fair value of investment property.

Dolmen City REIT is the one and only rental scheme in the sector. It has heavy investments in Dolmen Mall and The Harbour Front in Clifton, Karachi with income from the two buildings coming from offices on rent.

The gross income (rental and marketing incomes) stood at Rs1.44 billion in the half, which is 15% higher than Rs1.25 billion in the corresponding period.

The other income (profit on bank deposits) improved to Rs52.75 million from Rs37.29 million.

Administrative and operating expenses surged 22% to Rs195.27 million from Rs160.15 million in the corresponding period of the previous year.

Published in The Express Tribune, February 28^th, 2017.

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