In the previous financial year, DCCDL, a joint venture company of DLF, witnessed a notable 7% annual growth in rental income from its office buildings, amounting to Rs. 3,460 crore. This increase can be attributed to the rise in rental rates as well as the expansion of the company's asset portfolio.
DLF Cyber City Developers Ltd (DCCDL) is an enterprise formed through a collaboration between DLF Ltd and Singapore's sovereign wealth fund GIC. DLF possesses a majority share of approximately 67% in this joint venture company.
DCCDL possesses an operational rental portfolio spanning 41.9 million square feet, comprising 37.9 million square feet of office space and 4 million square feet of retail real estate.
As per an investor presentation by DLF, DCCDL's rental income from office buildings witnessed a growth from Rs. 3,232 crore in the previous year to Rs.3,460 crore in the fiscal year 2023-24.
In the previous fiscal year, the rental income generated from retail assets, including malls and shopping centres, experienced a significant increase of 18 percent, reaching Rs. 865 crore compared to Rs. 735 crore in 2022-23. Additionally, the service and other operating income also witnessed growth, rising by 14% to Rs.1,489 crore from Rs.1,311 crore in the preceding year.
DLF's leasing operations are thriving, with high occupancy rates and minimal vacancies. The recent regulatory clarification on floorwise denotification in SEZs is expected to further reduce vacancies in these areas.
In an interview with PTI, Vice Chairman and MD (Rental Business) Sriram Khattar,"We also achieved growth in rentals from our existing commercial assets. We have performed better than the industry in most parameters."
He highlighted,"The rental business continues to create new benchmarks in sustainability and offers global quality workspace solutions and malls at a fraction of the cost compared to the developed countries."
DCCDL saw a 9% rise in consolidated revenue to Rs. 5,903 crore from Rs. 5,419 crore in the previous fiscal year. The net profit also increased by 18% to Rs. 1,690 crore in 2023-24 compared to Rs. 1,429 crore in the previous year. The company's consolidated net debt was recorded at Rs.17,903 crore at the end of the last fiscal period.
The operational office portfolio consists of 37.9 million square feet, with 21.5 million square feet in non-SEZ properties and 16.4 million square feet in SEZ properties.
The company said,"We expect a steady recovery across the SEZ segment over the next few quarters given the announcement on floor-wise denotification. New retail pipeline builds out on track; (and have) positive outlook towards retail segment and its growth."
Currently, the DLF Group possesses 215 million square feet of potential development opportunities in both residential and commercial sectors. The group's main focus lies in the development and sale of residential properties, as well as the development and leasing of commercial and retail properties.
Copyright © 2024 HomesIndiaMagazine. All Rights Reserved.
