Lahore, January 09, 2023 (PPI-OT):The assigned rating emanates from ISE Towers REIT Management Company Ltd.’s (“ISE Towers or “The Company”) business profile characterized by stable operating revenue and strong customer base. The diversified shareholding pattern of the Company comprises 219 shareholders (Corporates, Banks, DFIs, Insurance Companies, Modarabas, pension funds, and others). The assigned rating incorporates sound corporate governance, an experienced management team, an adequate control environment, and Company’s pioneer status in the capital markets. The compliance function ensures adherence to all applicable internal and external rules and regulations.
The Company is deriving its core income from its dominating asset “ISE Towers” which is enjoying an almost 100% occupancy level. The multi-storey building is situated in the prime location of Blue Area, Islamabad. The Company is planning to convert the ISE Towers into REIT Fund. The project has achieved significant progress, in the shape of obtaining requisite approvals under REIT Regulation,2015, and the REIT Fund is likely to be launched in FY23.
Although the operating income of the Company increased during the year, however, the overall profitability of the Company decreased on account of share of loss from the subsidiary. The net profit stood at ~PKR 382mln for FY22 (FY21: PKR 513mln). The business risk of the Company is supported by high-profile tenants and economic recoveries. The Company has zero leveraging and its liquidity position remains comfortable. The equity stood at ~PKR 6.41bln at the end-Jun’22 (end-Jun’21: ~PKR 6.25bln).
The ratings are dependent upon the company’s ability to sustain its healthy business profile amidst strong competition, herein, effective and prudent management of financial risk indicators remain important. Moreover, upholding of governance framework is vital.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com