⚡ Flash Summary

Dolmen City REIT (DCR) reported strong financial results for the quarter ended September 30, 2025, with distributable profit increasing to PKR 1.385 billion from PKR 1.113 billion in the same period last year. The REIT maintained a high occupancy rate of 98% across its Dolmen Mall Clifton and Harbour Front properties. Earnings per unit (basic and diluted) increased to PKR 0.6229 from PKR 0.5005 year over year. DCR’s Net Asset Value (NAV) stands at PKR 34.40 per unit, with the unit trading at a 6.72% discount.

📌 Key Takeaways

• 🎉 Distributable profit increased significantly to PKR 1.385 billion, a notable rise from PKR 1.113 billion in Q1 2024.
• 🏢 Maintained a high occupancy rate of 98% across Dolmen Mall Clifton and Harbour Front.
• 📈 Earnings per unit (basic and diluted) surged to PKR 0.6229, compared to PKR 0.5005 in the prior year.
• 💰 Declared an interim cash dividend of PKR 0.63 per unit for the quarter ending September 30, 2025.
• 📊 Net Asset Value (NAV) stands at PKR 34.40 per unit.
• 🛒 Dolmen Mall Clifton’s leasable area is 542,847 sq.ft., with a 97.7% occupancy rate.
• 🏢 The Harbour Front maintains 100% occupancy across its 257,162 sq.ft. leasable area.
• ⭐ Total return on investment increased by 3.06x, from 6.91% in Q1 FY2025 to 21.19% in Q1 FY2026.
• 🛍️ Rental income increased to PKR 1.533 billion from PKR 1.286 billion year-over-year.
• 📉 Administrative and impairment expenses decreased from PKR 304.922 million to PKR 172.281 million.
• Footfall at Dolmen City remained high, averaging between 25,000 to 29,000 customers per day.
• ✅ Shariah compliance has been confirmed by the Shariah advisor.
• ⚖️ DCR unit trades at a 6.72% discount to its NAV.
• ✔️ Weighted Average Lease Expiry (WALE) for Dolmen City Mall is approximately 2.40 years.
• 🏢 Weighted Average Lease Expiry (WALE) for Harbour Front is approximately 4.13 years.

🎯 Investment Thesis

BUY. Dolmen City REIT presents a compelling investment opportunity due to its strong financial performance, high occupancy rates, and a discounted valuation relative to its NAV. The increase in distributable profit and dividend payout reflects the REIT’s improved operational efficiency and profitability. The robust footfall and strategic location of Dolmen Mall Clifton and Harbour Front position DCR favorably in the competitive real estate market. It is expected that the growth trend to continue as Pakistan’s economy expands.