Press Release

VIS Reaffirms Hybrid REIT Rating of Image REIT

Karachi, May 13, 2026: VIS Credit Rating Company Limited (VIS) reaffirmed the Hybrid REIT rating of Image REIT (‘IREIT’ or the ‘Scheme’) at ‘RFR3 (hr)’ (REIT Fund Rating Three (Hybrid REIT). The hybrid REIT rating of ‘RFR3 (hr)’ indicates successful implementation of REIT project is likely. Risk factors impacting value of REIT assets may vary with possible changes in the economy over the foreseeable future. Outlook on the assigned ratings remains ‘Stable’. Previous rating action was announced on March 19, 2025.

Image REIT was established through a Trust Deed dated July 01, 2022, between Sinolink REIT Management Company Limited (SRMCL) as the REIT Management Company (RMC) and Central Depository Company of Pakistan Limited (CDCPL) as the Trustee. The Scheme is governed under the REIT Regulations, 2022. The Trust Deed was registered on July 01, 2022, and the SECP granted approval for the REIT Scheme’s registration on March 07, 2023. The Scheme operates as a perpetual, closed-end, Shariah-compliant hybrid REIT, integrating rental income with capital appreciation from its development component. With a fund size of PKR 2.8bn, it operates in three segments; residential, commercial and retail. This structure allows the scheme to generate lease revenue while also benefiting from the appreciation of newly developed properties. The scheme was listed on the Pakistan Stock Exchange (PSX) on October 06, 2025.

Image REIT’s (IREIT) rating reflects the stability of its fully occupied, income-producing rental asset, which benefits from annual lease renewals with sponsor group tenants, supporting predictable cash flows. The REIT’s hybrid structure, with the development component fully equity-funded through the IPO, eliminates funding risk, while a debt-free capital structure and strong post-IPO liquidity provide financial flexibility for construction over an extended horizon.

These strengths are balanced by moderate to high execution risk in the development phase, coupled with relatively long build-out period. Revenue and tenant concentration within the sponsor group elevates counterparty risk. Governance improvements in line with the regulations are underway. The rating remains underpinned on expectations of stable rental income further supported by planned development progress.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.

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 May 13, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.