NEW DELHI – Have you ever wondered what drives the bustling commercial hubs in major cities? One key player, DLF Cyber City Developers Ltd (DCCDL), a joint venture between DLF Ltd and Singapore’s sovereign wealth fund GIC, is making waves with a remarkable 7% increase in rental income from office buildings, reaching ₹3,460 crore in the last fiscal year.
The Power of Expansion and Appreciation DCCDL boasts an impressive operational rental portfolio of 41.9 million square feet, with 37.9 million dedicated to office space and 4 million to retail real estate. This significant growth is fueled by rent appreciation and strategic expansion of their asset portfolio.
The Numbers Speak Volumes According to DLF’s investor presentation, DCCDL’s rental income from office buildings jumped to ₹3,460 crore in 2023-24 from ₹3,232 crore the previous year. Retail assets didn’t lag behind either, with rental income from malls and shopping centers soaring by 18% to ₹865 crore from ₹735 crore in 2022-23. Service and other operating income also saw a healthy rise, growing 14% to ₹1,489 crore from ₹1,311 crore.
A Healthy Occupancy Rate DLF’s Vice Chairman and MD (Rental Business), Sriram Khattar, expressed satisfaction with the business’s performance. “DLF’s rental business continues to do well. The occupancy levels are healthy, and vacancy is low. With the regulatory clarity of floorwise denotification in SEZs, vacancies in SEZs will also go down,” he said. He further highlighted that the development of new office and retail properties is progressing swiftly.
Sustainability and Quality at Its Best Khattar also emphasized the company’s commitment to sustainability, stating, “The rental business continues to create new benchmarks in sustainability and offers global quality workspace solutions and malls at a fraction of the cost compared to developed countries.”
Financial Highlights On the financial front, DCCDL’s consolidated revenue increased by 9% to ₹5,903 crore, up from ₹5,419 crore the previous fiscal. Net profit saw an even more impressive growth of 18%, reaching ₹1,690 crore in 2023-24 from ₹1,429 crore a year ago. DCCDL’s consolidated net debt stood at ₹17,903 crore at the end of the last fiscal year.
Strong Occupancy Across Segments The presentation revealed that occupancy levels across DCCDL’s non-SEZ office space portfolio remain robust at 97%, while SEZ assets recorded an occupancy level of 86%. Out of the total operational office portfolio of 37.9 million square feet, 21.5 million square feet is non-SEZ, and 16.4 million square feet is in SEZ properties.
Future Outlook DLF remains optimistic about the future. They expect a steady recovery across the SEZ segment over the next few quarters due to recent announcements on floor-wise denotification. The company is also focused on enhancing ecosystems and meeting the healthy demand for new office products. Additionally, they have a positive outlook towards the growth of the retail segment, with new retail projects progressing well.
DLF’s Legacy and Potential DLF, the country’s largest real estate firm by market capitalization, has developed over 158 real estate projects covering an area in excess of 340 million square feet. Currently, DLF Group has 215 million square feet of future development potential across residential and commercial segments. Primarily engaged in the development and sale of residential properties and the leasing of commercial and retail properties, DLF continues to shape India’s real estate landscape.
