Press Release

VIS reaffirms REIT Rating of Dolmen City REIT (the Scheme)

Karachi, September 4, 2020: VIS Credit Rating Company Limited (VIS) has reaffirmed Real Estate Investment Trust (REIT) Rating of Dolmen City REIT (DCR) at ‘AAA (rr)’ (Triple A Rental REIT). The REIT rating of ‘AAA (rr)’ (Triple A Rental REIT) denotes highest degree of stability in NAV. Risk is negligible with very low sensitivity to changing economic conditions. Previous rating action was announced on October 18. 2019.

The assigned rating incorporates the profile of Dolmen and Arif Habib Groups, which feature as shareholders in International Complex Projects Limited and REIT Management Company; both these groups have sound financial profile and experience in the real estate sector. The rating also derives strength from the competitive advantage of the REIT property based on its location, provision of amenities, high quality maintenance services and security; the REIT property comprises Harbour Front (office space), Dolmen City Mall (retail mall) and ancillary parking space. The business risk profile is supported by diversified tenant profile and recovery in footfall metrics with ease in lockdown measures and improvement in COVID-19 situation in the country. Tenant-wise revenue concentration risk is high in case of Harbor Front; however comfort is drawn from strong financial profile of clients and continuity of tenancy agreements during the rating horizon.

Aggregate occupancy level witnessed minor decrease vis-à-vis the preceding year at end-FY20; however, occupancy level is still high in both properties as per international benchmarks. Rent waivers were given by the management to provide relief to the tenants affected by slowdown in economy due to COVID-19; these rent waivers resulted in lower rental income and overall profitability for DCR in FY20. However, reduction has been noted in the percentage of monthly rent waiver granted to the tenants with ease in lockdown measures and improving COVID-19 situation in the country. Hence, profitability is expected to recover over the rating horizon. Ability of the fund to maintain competitive returns will remain a key rating driver.

For further information on this rating announcement, please contact the undersigned at 021-35311861 (Ext-306) or Mr. Narendar Shankar Lal (Ext: 203) at 021-35311861 or email at

Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria: Real Estate Investment Trusts (October 2019)

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited