Company taking steps to start the process of getting the rental business REIT ready
Real estate major DLF on October 30 reported around 48 percent decline in its consolidated net profit at Rs 232.14 crore for the quarter ended September.
Total income fell to Rs 1,723.09 crore in Q2 FY21 from Rs 1,940.05 crore in the corresponding period of last year.
Consolidated revenue stood at Rs 1,723 crore as compared to Rs 646 crore in the preceding quarter, a growth of 2.6 times.
Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 576 crore versus Rs 100 crore in the preceding quarter, the company said.
DLF, whose rental arm DLF Cyber City Developers houses its commercial office portfolio, said it is taking steps to start the process of getting the rental business ready for a real estate investment trust (REIT).
DLF Cyber City Developers’ rental business reported a consolidated revenue of Rs 1,040 crore, a quarter-on-quarter growth of 12 percent. EBITDA (excluding other income) rose 10 percent QoQ to Rs 733 crore. Net profit stood at Rs 171 crore.
The residential business is seeing green shoots of demand with consumer interest witnessing rising trends. “Consistent quality supply in conjunction with affordability will lead to overall demand recovery,” the management said.
New sales bookings in the quarter under review rose to Rs 853 crore as compared to Rs 152 crore in the preceding quarter. “We are getting ready for a new build out cycle and have identified a strong pipeline to be launched across various segments and geographies over the next few years,” it said.
It said that the company’s long-term outlook towards the rental business remains positive.
“The office business remains stable and continues to exhibit strong collections of over 98 percent. Cyber Park, a 2.5 million square feet commercial development in Gurugram, commenced operations from August. This addition of assets to the rental portfolio will lead to an incremental revenue of Rs 375 -400 crore,” the company said.
The company signed a major pre-leasing deal of 7.7 lakh sq ft with Standard Chartered GBS in Downtown Chennai for setting up of its largest campus globally. The development of Downtown at Gurugram and Chennai and the Noida project remains on track, it said.
The retail segment is witnessing gradual recovery with the luxury segment exhibiting better trends. “With all our retail properties now open and restrictions lifted for multiplexes and entertainment zones, we expect an increase in footfalls leading to recovery. We expect the festive season to provide the required fillip for this segment,” it said.DLF has an operational rental asset portfolio of around 35 million sq ft across the country.