DLF-GIC JV firm DCCDL's office rental income rises 11 pc to Rs 942 cr in Apr-Jun

New Delhi: During the first quarter of this fiscal year, DLF's rental subsidiary DCCDL saw a 11 pc year-on-year growth in office rental revenue, amounting to Rs 942 crore, due to increased demand for high-quality workspace.

DCCDL is a partnership between DLF and Singapore's GIC. DLF owns two-thirds (66.67 pc) of DCCDL, with GIC holding the remaining one-third (33.33 pc) stake. As per the most recent investor presentation, DCCDL saw an increase in rental income from office buildings to Rs 942 crore in the April-June quarter of the current fiscal year, up from Rs 851 crore in the same period last year.

The revenue generated from renting out retail real estate space increased by 9 per cent to Rs 210 crore in the first quarter of this financial year, up from Rs 192 crore in the previous year. DLF has reported that it has experienced a rental growth in the double digits through both organic growth and new developments in the commercial real estate sector.

"Retail presence will see a substantial rise, with the portfolio set to double in the next 4-5 years," it stated. DLF stated that they are unleashing the development capabilities while simultaneously updating current assets. Currently, DCCDL holds 42 million square feet of assets with occupancy rates standing at 93 percent. In terms of financial performance, DCCDL has seen a ten percent annual increase in revenue, reaching Rs 1,553 crore in the April-June period of 2024-25 compared to Rs 1,411 crore in the previous year.

The company's post-tax earnings rose by 20 percent to Rs 470 crore compared to Rs 391 crore in the same period the year before.DLF stated that they are optimistic about the rental business and are increasing their capex commitments to enhance their rental portfolio and achieve strong growth.

DLF holds the title of being the biggest real estate developer in India based on market capitalization. Over the last seventy years, DLF has built over 178 real estate projects totaling more than 349 million square feet. The potential for development in both residential and commercial sectors at DLF Group is 220 million square feet. Its main focus is on developing and selling residential properties, as well as developing and leasing commercial and retail properties.