The Board of Directors of Dolmen City REIT (DCR) have declared and approved a final cash dividend of PKR 0.50 per unit, in their meeting held on Tuesday, July 18, 2023. This is in addition to the interim dividends of PKR 1.31 per unit already paid to the unit holders.
On a cumulative basis, the REIT Scheme has yielded a dividend of PKR 1.81 per unit i.e., 18.1 percent for the year ended on June 30, 2023.
The aggregate value of dividends comes to PKR 4.025 billion. Resultantly, the REIT scheme has contributed more than PKR 600 million to the exchequer in the form of taxes.
In addition to yielding a cumulative dividend of PKR 23.541 billion for unit holders since its listing, the DCR has contributed more than PKR 4.6 billion under taxation to the exchequer. Since its launch in 2015, DCR has remained the highest-rated REIT Scheme each year (RR1 by VIS) for its investment quality.
DCR is Listed on Pakistan Stock Exchange (PSX) as a closed-end, shariah compliant, perpetual Rental REIT Scheme, governed under REIT Regulations 2022 of the Securities and Exchange Commission of Pakistan (SECP). According to the management company – Arif Habib Dolmen REIT Management Limited (RMC), DCR has played a pioneering role in the establishment of the REIT sector in Pakistan.
DCR has established itself as a viable new investment instrument for consistently growing rental income from one of the finest real estate assets in the country. Strong financial results emanated from an increase in income in all categories, cost savings, strong property management, and continuous growth in footfall as the destination of choice for the shoppers and corporates of Karachi.
Both property components of DCR; Dolmen City Mall and The Harbour Front (office building) experienced consistently high occupancy.
With the vision to realize the benefits, the Securities and Exchange Commission of Pakistan (SECP); revamped REIT regulatory framework in 2022. Supportive regulatory framework and prudent policies by SECP, State Bank of Pakistan (SBP), and Provincial and Federal Governments, resulted in increasing interest of stakeholders in conducting the Real Estate (RE) business under the REIT modality.
During FY21-23, more than thirteen (13) REIT Schemes got registered in Pakistan.
The 18% looks good in marketing, the actual dividend based on actual market price is 13% annualized (still good). The stock price has hovered around 13.5-13.9 during the year.