DLF expects 28 percent growth in its rental EBITDA by end of FY26

DLF expects 28 percent growth in its rental EBITDA by the end of FY26

Delhi NCR based listed real estate developer DLF Limited is expecting a 28 percent increase in its rental EBITDA by the end of FY 2025-26, top executives of the company said.

The realty major said that new assets which are going to be income generating in DLF are all coming up in the current year and will start generating rent from next year. These assets include three malls, one each in Delhi, Gurugram and Goa and an office space Atrium Place (Udhyog Vihar in Gurugram), which is a joint venture with Hines.

DLF is constructing three new malls one each at Moti Nagar in central-west Delhi, at DLF Phase-5 in Gurugram and Panjim in Goa. At present DLF has around 5 million square feet of retail portfolio and after these malls are operational, the retail portfolio will increase to around 6.3 million square feet.

“The FY'25 exit rental (EBITDA) will be as guided earlier in the ballpark of Rs 5,000 crore and add to that another about Rs 300 crore in DLF. So it will be Rs 5,300 crore (by the end of FY25). For FY'26, this total will jump to about Rs 5,800 crore for DCCDL (DLF Cyber City Developers Limited) and will jump to about Rs 1,000 crore for DLF, taking it to about Rs 6,800 crore. This is because the new assets which are going to be income generating in DLF are all coming up in the current year, be it the three malls or DLF's share in Atrium Place,” Sriram Khattar, Vice Chairman and Managing Director, Rental Business, DLF Limited, said in an investors call earlier last month.

Also Read: DLF to construct three new malls, grow commercial portfolio: Sriram Khattar

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Khattar said that for Atrium Place, out of the 2.9 million square feet of development, the company expects rentals to commence from May or June 2025 onwards for about 2.1 million sft, which will get completed. Another tower, which is about 8 lakh square feet, is slated for completion in December 2025, for which the rentals should start in May or June 2026.

Apart from this, DLF is expecting to receive an occupancy certificate (OC) for its Downtown 4 project in Gurugram during this quarter as it is nearing completion now.

“It's completely leased now. Hopefully, in the next 5-6 months, the tenants will do their fit-outs and we expect the rentals to commence from sometime in the month of May-June next year,” Khattar said adding the OC for its Downtown 3 in Chennai is likely to be received by late December 2024 or early January 2025.

Also Read: DLF Q2 results: Net profit rises 121% to Rs 1,387 crore

In Q2FY25 consolidated revenue of DLF Cyber City Developers Limited (DCCDL) stood at Rs 1,653 crore, reflecting YoY growth of 13 percent. Consolidated profit for the quarter stood at Rs 521 crore, registering a growth of 25 percent as compared to Q2FY24, the company had said in a regulatory filing.

DLF's consolidated revenue had surged 48 percent YoY to Rs 2,181 crore in the July-September 2024 quarter as compared to Rs 1,476.42 crore in Q2FY24.