New Delhi, Jun 9: DLF Cyber City Developers Ltd (DCCDL), a joint venture between DLF and GIC, has reported 15 per cent rise in its rental income last fiscal at Rs 3,006 crore on strong demand for quality office and retail spaces.
The rental revenue stood at Rs 2,620 crore in the previous financial year, according to its investors’ presentation.
DCCDL has a portfolio of 30.3 million sq ft of leased commercial spaces, largely grade-A office buildings.
DLF’s bulk of the rental assets are in this joint venture firm, while some of the commercial buildings are still part of the parent company.
DLF, the country’s largest realty firm, has 66.66 per stake in the JV firm DCCDL, while GIC — Singapore’s sovereign wealth fund — holds the remaining 33.34 per cent stake.
The joint venture was formed when DLF promoters sold their 40 per cent stake in the DCCDL for Rs 12,000 crore in 2017. This deal included sale of 33.34 per cent stake in the DCCDL to GIC for about Rs 9,000 crore and buyback of remaining shares worth about Rs 3,000 crore by the DCCDL.
As per the presentation, the DCCDL’s net profit dropped to Rs 1,317 crore last fiscal from Rs 1,400 crore in the 2018-19.
Total income dipped marginally to Rs 5,083 crore from Rs 5,088 crore during the period under the review.
DLF said that rental collections have maintained a healthy trend and are well on track.
“Work-from-home is expected to remain a positive supplement to the regular office-based model of working, not a substitute for the same,” it said.
In fact, it stated that the de-densification process could potentially increase the area leased in order to accommodate for the physical distancing requirements post COVID-19.
“India as a market remains extremely magnetic due to its proven track record in provision of high quality, highly economic services to the global economy. This attractiveness is bound to increase with the recovery, thereby increasing the demand for office space,” DLF said in the outlook.
Therefore, DLF said it has started new commercial projects in Chennai and Gurugram (Haryana).
On retail, DLF said it has remained connected with its tenants during the nationwide lockdown, supporting them with navigating this period.
“Strategic location of all DLF retail properties, along with a consistently strong customer response are expected to catalyse the recovery process,” it said.
However, DLF said that the industry might observe some stress where retail setups exist in marginal locations or operators have a less than optimal balance sheet health and expertise. (PTI)
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