DLF rental arm DCCDL sees 7% rise in office rental income in FY24

DLF's joint venture entity, DCCDL, witnessed 7 per cent annual increase in rental income from office buildings, reaching Rs 3,460 crore in the last fiscal year. The growth was attributed to rent appreciation and the expansion of the asset portfolio.

DCCDL, a joint venture between DLF Ltd and Singapore's sovereign wealth fund GIC, holds an operational rental portfolio of 41.9 million square feet. Of this, 37.9 million square feet is dedicated to office space, while 4 million square feet is allocated for retail real estate.

According to an investor presentation by DLF, DCCDL's rental income from office buildings rose from Rs 3,232 crore in the preceding year to Rs 3,460 crore in FY24. Additionally, the rental income from retail assets, including malls and shopping centres, increased by 18 per cent to Rs 865 crore, up from Rs 735 crore in FY23.

Service and other operating income also experienced growth, reaching Rs 1,489 crore in the last fiscal year, compared to Rs 1,311 crore in the previous year.

DLF's Vice Chairman and MD of Rental Business, Sriram Khattar, expressed satisfaction with the performance of DLF's rental business, highlighting healthy occupancy levels and low vacancy rates. Khattar also emphasized the progress in developing new assets, both in office and retail properties.

On the financial front, DCCDL recorded a 9 per cent increase in consolidated revenue to Rs 5,903 crore from Rs 5,419 crore in the preceding fiscal year. Net profit also saw growth, rising by 18 per cent to Rs 1,690 crore in FY24.

DCCDL's consolidated net debt stood at Rs 17,903 crore at the end of the last fiscal year. The occupancy levels across DCCDL's non-SEZ office space portfolio remained robust at 97 per cent, with SEZ assets showing an occupancy level of 86 per cent.

Looking ahead, DLF expects a steady recovery across the SEZ segment over the next few quarters, given the announcement on floor-wise denotification. The company outlined priorities for the rental business, focusing on healthy demand momentum for new office products and enhancing ecosystems, along with positive expectations for the retail segment's growth.

DLF, India's largest real estate firm by market capitalization, has an extensive portfolio of real estate projects and significant future development potential across residential and commercial segments.

(With PTI inputs)