Dolmen City REIT has reported a significant improvement in profitability for the year ended June 30, 2026, supported by higher rental and marketing income and a substantial increase in the fair value of its investment property.
According to the financial results submitted by Arif Habib Dolmen REIT Management Limited, the REIT recorded profit after taxation of Rs12.69 billion during FY2026, compared with Rs7.99 billion in the previous year. This represents a strong year-on-year increase in earnings. 2853508
Rental income remains the key contributor
Dolmen City REIT generated Rs6.45 billion in rental income during FY2026, compared with Rs5.78 billion in FY2025. Marketing income also increased to Rs113 million, taking total revenue to approximately Rs6.56 billion, up from Rs5.87 billion a year earlier.
After administrative, operating and other expenses, the REIT reported profit before the change in fair value of its investment property of Rs5.72 billion, compared with Rs4.91 billion in FY2025.
Major boost from property valuation
One of the biggest factors behind the increase in reported earnings was the Rs6.97 billion unrealised gain from the remeasurement of investment property at fair value. This compares with an unrealised gain of Rs3.08 billion in the previous year.
As a result, profit before taxation climbed to Rs12.69 billion, compared with Rs7.99 billion in FY2025. The financial statements show that the REIT had investment property valued at approximately Rs81.73 billion at June 30, 2026, compared with Rs74.76 billion a year earlier. 2853508
Net asset value also improves
Dolmen City REIT’s total assets increased to approximately Rs84.53 billion at the end of FY2026, from Rs77.46 billion in FY2025. The unit holders’ fund rose to Rs83.53 billion, compared with Rs76.51 billion a year earlier.
The net asset value per unit increased to Rs37.56, compared with Rs34.41 at the end of the previous financial year, indicating an improvement in the underlying value attributable to unit holders.
Cash generation remains healthy
The REIT generated Rs5.49 billion in net cash from operating activities during FY2026, compared with Rs4.94 billion in the previous year. After investing activities and dividend payments, cash and cash equivalents stood at approximately Rs2.15 billion at June 30, 2026.
The company also paid cash dividends totaling about Rs5.67 billion during the year, reflecting continued distributions to unit holders. 2853508
No dividend announced with the results
Despite the strong annual performance, the board’s October 8, 2026 announcement stated nil cash dividend, nil bonus shares and nil right shares in connection with the reported results. The filing also stated that there was no other entitlement or price-sensitive corporate action. 2853508
Overall, Dolmen City REIT’s FY2026 results highlight stronger recurring rental earnings, improved asset values and higher profitability. The rise in net asset value per unit and continued cash generation provide important indicators of the REIT’s financial position, while the sizeable fair-value gain was a major contributor to the year’s reported profit.
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