DLF’s Rental Arm Sees 11% Boost in Office Rental Income

DLF Ltd’s rental arm, DLF Cyber City Developers Ltd (DCCDL), reported an 11% increase in office rental income, reaching ₹942 crore in the first quarter of this fiscal year. This growth is attributed to higher demand for its premium office spaces. DCCDL is a joint venture between DLF and Singapore’s sovereign wealth fund, GIC, with DLF holding a 66.67% stake and GIC holding 33.33%.

The investor presentation revealed that DCCDL’s office rental income grew from ₹851 crore in the same period last year to ₹942 crore this year. Rental income from retail real estate also saw a 9% increase, rising to ₹210 crore from ₹192 crore.

DLF noted that its commercial real estate segment has experienced double-digit rental growth through organic expansion and new developments. The company plans to double its retail presence over the next 4-5 years and is focusing on unlocking development potential and modernising existing assets.

Currently, DCCDL’s portfolio spans 42 million square feet with an occupancy rate of 93%. The company’s revenue for the April-June period of 2024-25 grew by 10% to ₹1,553 crore, up from ₹1,411 crore the previous year. Profit after tax also increased by 20%, rising to ₹470 crore from ₹391 crore.

DLF remains optimistic about the rental market and is accelerating capital expenditure to enhance its rental portfolio and sustain growth. As India’s largest real estate developer by market capitalisation, DLF has developed over 178 projects spanning more than 349 million square feet over the past seven decades. The group still has 220 million square feet of development potential in both residential and commercial segments.

About DLF Ltd

DLF Ltd, along with its subsidiaries, associates, and joint ventures, is involved in real estate development, encompassing land acquisition, planning, execution, construction, and marketing of projects. The company also operates in leasing, power generation, maintenance services, hospitality, and recreational services, all integral to its real estate business.

On July 29, 2024, the share price of DLF Ltd opened at ₹833.95, touching the day’s high at ₹871.00, as of 11:10 AM on the NSE.

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