Dolmen City REIT reports 29% decline in revenue due to rental waivers

October 16, 2020 (MLN): Dolmen City REIT has unveiled its financial results for the quarter ended September 30, 2020, as per which the net profits of the company have declined by 30.40% YoY to Rs  554 million, compared to the profits of Rs 796 million of the same period last year. 

The earnings per share of the company also exhibited a decrease of 30.39% YoY to Rs 0.249 as opposed to Rs 0.358 last year.

Other than this, the Board of Directors of DCR announced and approved an interim cash dividend of Re 0.25 per share i.e. 2.5% (annualized 10%) for the quarter ended September 30, 2020.

According to the financial results issued to PSX, the company posted a revenue of Rs 602 million against Rs 847 million in the same period last year, registering a decline of 29% YoY. This negative growth is mainly attributed to the waivers, the management of DCR had provided to its tenants amid pandemic crises.

On the expense side, during 1QFY21,  administrative expenses declined by 14.71% YoY to Rs 100 million.

Meanwhile, the Other income of the company increased marginally by 1.30% YoY to Rs 55 million in 1QFY21.

Taking into consideration the challenging situation due to COVID-19, the management waived 15% rentals of the tenants who do not provide essential services in September. Furthermore, the license fee for food outlets has also been reduced for the month of September, as per report by Abbasi and Company Limited.

Profit and loss account for the Quarter ended September 30, 2020 (Rupees'000)

 

September 2020

September 2019

% Change

Income

 

 

 

Rental income

602,781

847,391

-28.87%

Marketing income

16,943

42,299

-59.94%

Administrative and operating expenses

-100,101

-117,370

-14.71%

Net operating income

519,623

772,320

-32.72%

Other income

55,057

54,349

1.30%

Management fee

-15,589

-23,170

-32.72%

Sindh sales tax on management fee

-2,027

-3,012

-32.70%

Trustee remuneration

-2,598

-3,862

-32.73%

Sindh sales tax on trustee remuneration

-338

-502

-32.67%

Profit before taxation

554,128

796,123

-30.40%

Taxation

 

Profit after taxation

554,128

796,123

-30.40%

Earnings per unit – Basic and diluted

0.2492

0.358

-30.39%

 

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Posted on: 2020-10-16T15:51:00+05:00

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