In a robust performance for FY24, DLF Cyber City Developers Ltd (DCCDL) reported a 7% increase in rental income from its office buildings, reaching Rs 3,460 crore. This rise, driven by rent appreciation and expansion of the asset portfolio, underscores the joint venture’s solid market presence.
DCCDL, a partnership between DLF Ltd and Singapore’s sovereign wealth fund GIC, maintains a significant operational rental portfolio of 41.9 million square feet. This includes 37.9 million square feet of office space and 4 million square feet of retail real estate. DLF holds a 67% stake in the JV firm.
According to DLF's investor presentation, DCCDL's office rental income rose from Rs 3,232 crore in the previous fiscal year to Rs 3,460 crore in 2023-24. Additionally, rental income from retail assets, such as malls and shopping centers, surged by 18% to Rs 865 crore, up from Rs 735 crore in the prior year. Service and other operating income also saw a notable increase of 14%, growing to Rs 1,489 crore from Rs 1,311 crore.
"DLF's rental business continues to thrive with healthy occupancy levels and low vacancy rates," commented Sriram Khattar, Vice Chairman and MD (Rental Business) of DLF. "With regulatory clarity on floorwise denotification in SEZs, vacancy rates in SEZs are expected to decrease further. We have also seen growth in rentals from our existing commercial assets, outperforming industry standards on most parameters."
Khattar highlighted the ongoing development of new office and retail properties, which are progressing well. He emphasized that the rental business is setting new sustainability benchmarks and offers world-class workspace solutions and malls at competitive costs compared to developed countries.
On the financial front, DCCDL reported a consolidated revenue increase of 9%, reaching Rs 5,903 crore, up from Rs 5,419 crore in the previous fiscal. The net profit also grew significantly by 18%, amounting to Rs 1,690 crore compared to Rs 1,429 crore a year earlier. At the end of the fiscal year, DCCDL's consolidated net debt stood at Rs 17,903 crore.
Occupancy levels across DCCDL's non-SEZ office space portfolio remain strong at 97%, while SEZ assets have an occupancy rate of 86%. The total operational office portfolio comprises 37.9 million square feet, with 21.5 million square feet in non-SEZ properties and 16.4 million square feet in SEZ properties.
DLF outlined its priorities for the rental business, noting a healthy demand momentum for new office products and a positive outlook for the retail segment's growth. The new retail pipeline is progressing on track, aiming to enhance ecosystems and continue expanding.
DLF, India’s largest real estate firm by market capitalization, has developed over 158 real estate projects covering more than 340 million square feet. Currently, the DLF Group holds 215 million square feet of potential future development across residential and commercial segments, focusing on both development and leasing of properties.
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