Press Release

VIS reaffirms REIT Rating of Dolmen City REIT (the Scheme)

Karachi, September 22, 2021: VIS Credit Rating Company Limited (VIS) has reaffirmed Real Estate Investment Trust (REIT) Rating of Dolmen City REIT (DCR) at ‘AAA (rr)’ (Triple A Rental REIT). 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 4, 2020.

The assigned rating incorporates the profile of Dolmen and Arif Habib Groups, as shareholders in International Complex Projects Limited and REIT Management Company, having sound financial profile and experience in the real estate sector. The rating also derives strength from the competitive advantage of the REIT property based on its location, provision of amenities, high quality maintenance services and security; the REIT property comprises Harbour Front (office space), Dolmen City Mall (retail mall) and ancillary parking space. The business risk profile is supported by diversified tenant profile and recovery in footfall metrics with ease in lockdown measures and improvement in COVID-19 situation in the country.

Occupancy levels, after declining in FY20, witnessed an increase on an aggregate level in FY21 vis-à-vis preceding year. The economic situation in the country and greater competition in terms of availability of comparable facilities may affect occupancy rates over the long term. Going forward, maintaining high occupancy levels will continue to be an important rating driver.

Rental concessions along with deferment in rental escalations offered to the tenants contributed to a lower rental income and cash flows in FY20; however, gradual resumption of economic activities, increasing footfall and reduction in monthly rent waivers led to improvement in rental income during FY21. While client concentration in terms of rental income is high, comfort is drawn from the volume of tenants, lengthy tenancy agreements with most clients and provision of state of the art facilities and services by the Property Manager. Going forward, future rental income is dependent on pace of economic recovery and escalation in rental rates. As per management, tenant wise escalations are in place and will come into effect by November 2021. Timely materialization of the same is considered important. Unleveraged capital structure and sound sponsor profile shall continue to provide support to the assigned rating.

For further information on this rating announcement, please contact Ms. Asfia Aziz or the undersigned (Ext: 306) at (021) 35311861-66 or email at

Faryal Ahmad Faheem
Deputy CEO

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 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 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited