Shams ul Nisa

The Dolmen City REIT (DCR) has posted strong growth driven by strategic retail expansion and robust lease structures, reports WealthPK.

Additionally, Dolmen Mall Clifton (DMC) continues to anchor the success of DCR as a premier retail hub in Pakistan. The mall spans nearly 543,000 square feet and features over 130 local and international outlets, achieving a 98.4% occupancy rate as of March 2025, demonstrating strong tenant demand and an effective leasing strategy.

Furthermore, DCR demonstrates strong resilience through its inflation-protected, long-term lease agreements, ensuring stable income for investors. As of March 2025, the Weighted Average Lease Expiry (WALE) stands at 2.5 years for Dolmen Mall Clifton and 4.28 years for the Harbour Front office tower.

During the review period, DMC maintained an occupancy rate of 98.4%, while Harbour Front achieved full occupancy, up from 97% in December 2024. Moreover, the Harbour Front’s prime location and modern facilities have made it a preferred choice for leading local firms, particularly in the financial, IT, and BPO sectors, highlighting strong demand for premium office space in Karachi.

Additionally, the panoramic views of the Arabian Sea and state-of-the-art infrastructure attract a diverse mix of multinational firms, reflecting a broader shift among corporate tenants toward more efficient, tech-enabled, and collaborative work environments.

DCR reported a strong performance for the nine months ended March 31, 2025, with rental income rising 11.4% to Rs4.02 billion, while marketing revenue grew 27% to Rs273.73 million.

DCR plays a vital role in supporting Pakistan’s formal economy by promoting transparency, strong corporate governance, and tax compliance through its regulated investment structure. It offers both local and international investors a secure way to access the real estate market.

Furthermore, the DCR’s strategy, centered on lease agreements, a diverse tenant mix, and professional management, positions it to benefit from the rising demand for organized retail and high-quality office space. Therefore, DCR’s assets are well-positioned to benefit from the rising trend of malls transforming into integrated lifestyle hubs that blend retail, dining, and entertainment, in line with ongoing urbanization and changing consumer preferences.

DCR continued to attract strong investor interest, with its unit price of stock rising to Rs24.99 by March 31, 2025, reflecting a 51.45% gain during the fiscal year. The company declared a total dividend of Rs1.60 per unit, translating into an attractive annualized yield of 21.33%.  

DCR appeals to ethically conscious investors through its full Shariah compliance, certified by Alhamd Shariah Advisory Services, ensuring all income distributed under Shirkah and Ijarah principles is halal. Thus, DCR remains committed to improving tenant experience, advancing sustainability, and utilizing digital marketing to enhance performance. Its continued growth reflects the strength of the REIT model in Pakistan and its pivotal role in promoting transparency and development within the real estate industry.

Credit: INP-WealthPk