DCR 9MFY26 profit falls 35%

April 29, 2026 (MLN): Dolmen City REIT (PSX: DCR) reported a 35% decline in its overall net profit for the nine months ended March 31, 2026, recording Rs5.23bn compared to Rs8.08bn in the corresponding period last year.

Reflecting this total bottom-line contraction, the trust's basic and diluted earnings per unit dropped to Rs2.35 from Rs3.64 in 9MFY25.

However, this optical decline masks a strong core operational performance, as the drop in total profitability was entirely driven by a massive reduction in non-cash unrealized fair value gains on its investment property.

On the core operational front, DCR demonstrated robust growth. Rental income posted a solid 17% year-on-year increase, rising to Rs4.72bn from Rs4.02bn.

This easily offset a sharp 69% decline in marketing income (which fell to Rs84.55m). Consequently, total revenue grew by 12% to Rs4.81bn.

The trust also exhibited excellent cost control. Administrative and operating expenses were slashed by 25% to Rs569.72m.

Furthermore, DCR booked a reversal of impairment loss on receivables amounting to Rs14.07m (compared to a Rs9.61m loss last year). Driven by higher rental yields and reduced operating costs, the net operating income surged by 21% to Rs4.25bn.

After accounting for slightly lower other income (Rs158.96m) and a 21% increase in management and trustee fees (totaling Rs171.13m), DCR's core profit before change in fair value of investment property registered a healthy 19% expansion, reaching Rs4.24bn up from Rs3.55bn in the prior year.

This non-cash gain plummeted by 78% to Rs992.26m from a massive Rs4.53bn recorded in 9MFY25. It was this significant contraction in property value appreciation that dragged the total net profit down by 35% to Rs5.23bn.

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