DLF Will Be A REIT In A Few Months

Senior executives of real estate developer DLF Ltd NSE -0.52 percent informed investors during the Q4 conference call that the business would be REIT ready in the next few months after completing the majority of the preparatory work.

DLF Limited’s Whole Time Director and CEO, Ashok Kumar Tyagi, stated that the asset perimeter had been frozen, as have the majority of the critical decisions regarding downstream, acquisitions, and everything else. Moreover, a Cybercity board meeting will take place within the next four weeks. In February of last year, DLF recruited three prominent advisory firms to assist it in preparing its rental-yielding commercial assets for a REIT listing: Morgan Stanley, KPMG, and Shardul Amarchand Mangaldas & Co.

Promising Future Awaits DLF

The rental arm of DLF Cyber City Developers Ltd NSE 1.20 percent was on the mend, with occupancy at 88 percent at the end of the fiscal year and retail business income up 67 percent year on year (Y-on-Y). Year over year, rental income climbed by 10%.

While discussing REITs, Sriram Khattar, DLF’s MD-rental business, informed investors that the preparations had progressed significantly. There have been several meetings with bankers, tax advisers, and other professionals. Their planning should be ready over the next few months. It is up to the shareholders to determine when they want to do it. The company’s overall revenue for the year was Rs 4,533 crore; up 3% from the previous year’s figure of Rs 4,385 crore.

Tyagi informed the investors that the market continues to be strong, which is why they are expanding. The Embassy Group and Blackstone-backed Embassy Office Parks launched India’s first REIT in April 2019. Tyagi added that on the commercial lease side, their office firm demonstrates tremendous endurance in collecting, despite some pretty terrible conditions. In the next months, the company’s management anticipates high demand for office space.