Karachi, March 10, 2023 (PPI-OT): TPLP: Corporate briefing session key takeaways
TPL Properties Limited (TPLP) held its corporate briefing yesterday to discuss the 1HFY23 results and outlook. To recall, company for 1HFY23 reported consolidated earnings of Rs3.5bn (EPS Rs6.6), almost flat on a YoY basis. For 2QFY23, company reported consolidated profitability of Rs3.7bn (EPS Rs7.0), up by 6% YoY. We present key takeaways from the briefing session.
TPL Properties (TPLP) has established itself as a leading institutional Real Estate investor, developer and manager of Pakistan. The three ongoing projects under TPLP’s flagship REIT Fund include 1) A Tech park 2) Luxury Residential tower – One Hoshang and 3) A master planned community with retail spaces and residential suites – Mangrove. As of now, TPLP has successfully transferred all three properties to the REIT management company (RMC).
From the first round of funding worth Rs18.3bn for its REIT fund – I during the last year, TPLP has utilized cash received from recent transactions to kick start its development projects. The fund’s NAV now stands at Rs32.2, an increase of 1.76x since the financial close in June last year. This NAV however includes undrawn commitment of Rs3.4bn. TPLP has planned IPO of the REIT by year 2025.
According to the management, major part of the detailed design exercise for the Tech park has been completed and ground breaking is expected within a quarter’s time whereas the project is expected to be fully completed by 4QFY25.
Regarding One Hoshang, the luxury residential project, management apprised that most relevant NOCs have been obtained and work on the project has been initiated. The project is expected to be completed by 4QFY25. Project will be standing tall with 37 stories and will house 35 residential units where each floor will have only one luxury apartment. TPLP already has soft commitments for the residential units.
Management shared that Mangrove’s development will be carried out in phases from FY23 to FY32 where Phase-I is expected be completed by FY26.
The company has also recently announced its plan to enter the telecom tower segment through a digital Infra REIT Fund. The REIT Fund shall own the towers and earn rental income in lieu of O and M services provided to Telcos. TPL Properties and TASC Towers, a mobile phone tower operator based in the UAE, have formed a consortium for the said venture. The consortium is currently in exclusive final negotiations to acquire Pakistan’s largest telecom tower company “Deodar”. TPL RMC’s foreign subsidiary TPL Investment Management (TPL IM), fund manager registered in Abu Dhabi, will also manage future acquisitions by TASC on which it will earn fees in US$.