⚡ Flash Summary

Dolmen City REIT (DCR) reported a strong operational performance in its Annual Report for the year ended June 30, 2025. The REIT achieved an impressive occupancy rate of 98.5%, up from 97.48% the previous year. Rental income increased significantly, and the REIT successfully maintained its position as a leading retail and lifestyle destination. The board declared a final cash dividend of PKR 0.63 per unit, bringing the total dividend for FY25 to PKR 2.23 per unit.

📌 Key Takeaways

• 🏆 DCR’s occupancy rate reached 98.5% in FY25, increasing from 97.48% in FY24.
• 📈 Rental income grew to PKR 5,780.50 million, up from PKR 5,078.58 million in FY24.
• 🛍️ Marketing income rose to PKR 94.116 million, from PKR 80.02 million in FY24.
• 🏦 Profit on Shariah-compliant bank deposits declined to PKR 211.56 million, from PKR 338.95 million in FY24.
• 💸 Administrative, operating, and other expenses totaled PKR 1,178.09 million, up from PKR 982.52 million in FY24.
• 📊 The fund size increased to PKR 76.52 billion, from PKR 73.19 billion in FY24.
• ⭐ Net Asset Value (NAV) stood at PKR 34.41 per unit.
• ✨ The stock price traded at a 21.50% discount to NAV.
• 💰 The Board declared a final cash dividend of PKR 0.63 per unit.
• 🎉 Total dividend for FY25 amounts to PKR 2.23 per unit.
• ✅ Average monthly footfall increased to 747,797 visitors, up from 722,666 in FY24.
• 👣 DCR recorded approximately 8.97 million visitors in FY25, an improvement from 8.67 million in FY24.
• 💯 The Scheme has set the benchmark for the industry
• 10 yr Key Metrics: Unit price rose from PKR 11.0 to PKR 27.01 (+142%), delivering 276% total return.
• AAA, highest credit rating assigned to DCR by VIS credit rating agency

🎯 Investment Thesis

Given the high occupancy rates, growth in revenue and history of paying dividends, a HOLD position is advised. Positive signs are however counterbalanced with sector risks of concentration in Pakistan and general economic factors.