News: DLF's rental arm clocks 10% increase in rent income at Rs 3,350 crore in FY22-30-04-2022
According to an investors presentation, the rental income of DLF Cyber City Developers grew to Rs 3,350 crore during last fiscal year from Rs 3,029 crore in 2020-21.
NEW DELHI: DLF's rental arm DCCDL has achieved a 10 per cent growth in its rent income at Rs 3,350 crore during last fiscal year, mainly on the back of recovery of business at its shopping malls. DLF holds bulk of its rent-yielding commercial properties in DLF Cyber City Developers Ltd (DCCDL).
DCCDL, which is a joint venture between DLF and Singapore's sovereign wealth fund GIC, has a commercial portfolio of 37.9 million square feet, of which 34 million square feet is office space and the rest is for retail.
DLF has nearly 67 per cent stake in the JV firm, while GIC has the remaining.
According to an investors presentation, the rental income of DCCDL grew to Rs 3,350 crore during last fiscal year from Rs 3,029 crore in 2020-21.
Out of the total rental income, the rent from office spaces grew 5 per cent to Rs 2,889 crore in 2021-22 from Rs 2,753 crore in the previous year.
Rentals from its retail real estate assets witnessed growth of 67 per cent to Rs 461 crore in last fiscal year from Rs 276 crore in 2020-21.
Businesses at shopping malls were badly hit during the first and second wave of the Covid-19 pandemic.
On office space, DLF said that vacancies are gradually declining and rentals are steady with "upward bias in later part of year".
"Occupier's attendance steadily improving and should reach near pre-Covid levels in next 1-2 quarters," the presentation said.
DCCDL continues to pre-lease buildings before receipt of occupancy certificates.
Talking about retail real estate portfolio, DLF highlighted that there has been a strong rebound post third wave of the pandemic
"Footfalls fast moving to pre-Covid levels; important to continuously evolve / curate experiential shopping," DLF said.
The company said it continues to maintain and re-enforce strong relationships with its tenants.
On financial front, DCCDL reported 3 per cent increase in revenue to Rs 4,533 crore during last fiscal year.
Net profit grew 10 per cent at Rs 1,002 crore.
The net debt of DCCDL stood at Rs 19,063 crore as on March 31, 2022.
On new development, DCCDL said it is currently constructing 7 million square feet of office spaces in Gurugram and Chennai and out of that, 1.7 million square feet is near completion.
In December 2017, DLF had formed a joint venture with GIC after its promoters sold their entire 40 per cent stake in DCCDL for nearly Rs 12,000 crore.
This deal included sale of 33.34 per cent stake in DCCDL to GIC for about Rs 9,000 crore and buyback of remaining shares worth about Rs 3,000 crore by DCCDL
DLF Ltd is India's leading real estate developer
It has developed more than 153 real estate projects and developed an area in excess of 330 million square feet.
DLF has a land bank to further construct 215 million square feet area.
