⏸️ TPLRF1: HOLD Signal (6/10) – Transmission of Annual Report for the Year Ended June 30, 2025

📌 Key Takeaways

• ✅ NAV increased to PKR 33.6 billion from PKR 32.2 billion YoY.
• 🌱 Launched ‘The Mangroves’, a sustainable urban ecosystem project.
• 🏢 Successfully launched ‘Lagoon Views Tower 1’.
• 🎯 Targetting 4.2% GDP growth for FY26 despite flood risks.
• ✔️ Diversified portfolio across commercial, residential, and mixed-use developments.
• 🤝 Government introduced incentives for real estate growth in Budget FY26.
• 📉 Average steel prices declined from ~PKR 270,000/Ton in FY24 to ~PKR 247,000/Ton in FY25.
• 💰 Net profit after tax stood at PKR 758 million, compared to PKR 376 million in the previous year.
• 💸 Earnings per unit: PKR 0.41.
• ⬆️ Fund’s total income stood at PKR 1,541 million, including a fair value gain.
• ⬇️ Total operating expenses stood at PKR 772 million.
• 🏢 NAV per unit: 18.28
• ✅ REIT Fund Rating RFR 3+ (Stable Outlook) by PACRA.
• 🏢 Divestment of TPL Tech. Zone Phase-I planned through sale of project land.
• 🏗️ One Hoshang project expected completion by Q3 2028, with construction slowdown due to sales.

🎯 Investment Thesis

Given the fund’s growth, ongoing project developments, and sustainability focus, I assign a HOLD rating for TPL REIT Fund I, as the macroeconomic environment creates uncertainty and pressure on both the construction business and the Pakistani economy. A diversified strategy to mitigate risk, innovation, a dedicated management team and delivering steady returns for investors will need to be consistently accomplished. I estimate TPL REIT to reach a NAV per share between PKR 19-20 within the next 12-18 months.