Press Release

JCR-VIS reaffirms REIT Ratings of Dolmen City REIT (the Scheme)

Karachi, September 17, 2018: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed Real Estate Investment Trust (REIT) Rating of Dolmen City REIT (DCR) at ‘RR1’ (REIT Rating One). Outlook on the assigned ratings is ‘Stable’ and the funds rated in “RR1” Category are judged to be of highest investment quality. Previous rating was announced on July 25, 2017.

Current rating of the closed-end Dolmen City REIT fund derives strength from its exposure in two properties namely the Dolmen Mall and The Harbour Front (office building). As per industry dynamics, the properties enjoy competitive advantage based on their location, provision of amenities, high quality maintenance services and security. Since inception, both properties have experienced high occupancy levels while the mall continues to exhibit a diversified tenancy profile and increasing footfall. Tenant risk, as manifested in concentration levels, is high in case of Harbor Front. Although client concentration is considered high, however, comfort is drawn from strong financial profile of clients.

Given that the property continues to hold a strong competitive position, risk of variation in occupancy levels is considered low. As per management, occupancy levels will only be sensitive to greater competition from comparable properties (if any) with similar facilities management, over the long term. Moreover, sustaining occupancy levels will be a key driver for investment returns, particularly if economic growth faces slowdown.. However, assurance of returns over the foreseeable horizon is considered high. In the backdrop of an increasing interest rate scenario, 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 Mr. Atiq Anwar Mahmudi (Ext: 208) at 021-35311861-70 or fax to 021-35311873.



Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria: Real Estate Investment Trusts (January 2015)
http://www.jcrvis.com.pk/Images/RentalREITs-Mehtodology%202015.pdf

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 September 17, 2018 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.