DLF rental arm’s income up 10% at ₹3,350 cr in FY22

NEW DELHI: DLF’s rental arm DCCDL has achieved a 10% growth in its rent income at ₹3,350 crore during last fiscal year, mainly on the back of recovery of business at its shopping malls.

DLF has the bulk of its rentyielding commercial properties in DLF Cyber City Developers Ltd (DCCDL), which is a joint venture (JV) between DLF and Singapore’s sovereign wealth fund GIC.

DCCCL has a commercial portfolio of 37.9 million square feet, of which 34 million square feet is office space and the rest is for retail. DLF has nearly 67% stake in the JV firm, while GIC has the remaining.

According to a presentation by investors, the rental income of DCCDL grew to ₹3,350 crore during last the fiscal year from ₹3,029 crore in 2020-21.

Out of the total rental income, the rent from office spaces grew 5% to ₹2,889 crore in 2021-22 from ₹2,753 crore in the previous year.

Rentals from its retail real estate assets witnessed growth of 67% to ₹461 crore in last fiscal year from ₹276 crore in 2020-21.

Businesses at shopping malls were badly hit during the first and second wave of the Covid-19 pandemic.

On office space, DLF said vacancies are gradually declining and rentals are steady with “upward bias in later part of year”. “Occupier’s attendance steadily improving and should reach near pre-Covid levels in next 1-2 quarters,” the presentation said.

DCCDL continues to pre-lease buildings before receipt of occupancy certificates.

DLF highlighted that there has been a strong rebound in the retail real estate portfolio after the third wave. “Footfalls fast moving to pre-Covid levels; important to continuously evolve / curate experiential shopping,” DLF said.