DLF aims to double rental business to Rs 4,700 crore in next 3 years

DLF, the country's largest listed developer, is looking to double its rental portfolio to Rs 4,700 crore in the next three years.

The company's rental arm, DLF Cyber City Developers (DCCDL), had a rental of Rs 2,510 crore in FY19. DLF has forecast a rental growth of 20 per cent on a compound annual growth rate (CAGR) basis, the company said in its latest analyst presentation.

DLF's rental platform has 32.8 million sq ft of operational assets and 3.2 million sq ft of under construction assets. DLF promoters sold 33.34 per cent stake in DCCDL to Singapore’s GIC for Rs 9,000 crore in 2017.

DCCDL is planning to launch two projects —a 3 million sq ft project in Gurugram and a 4 million sq ft project in Chennai—in the current financial year.

On the residential side, the real estate company said it is expecting sales worth Rs 2,700 crore in FY20, a 10 per cent increase over FY19.

DLF said its net debt will reduce to Rs 2,000 crore in the next couple of months. It had a net debt of Rs 4,483 crore in Q4FY 19 of which it is planning to pay Rs 1,300 crore on Thursday.

DLF on Tuesday said its net profit jumped 79 per cent to Rs 435 crore for the quarter ended  March. Its net profit stood at Rs 247.73 crore in the year-ago period. The real estate firm’s total income also rose 44 per cent to Rs 2,661 crore during the same period from Rs 1,845.92 crore in the corresponding period of the previous year.

 “With the debt overhang behind us and completion of all legacy projects, DLF will now work with an enhanced focus on generating free cash flow through monetisation of our ready-to-occupy inventory,” the company said.

New highs

• DLF’s rental arm DLF Cyber City Developers (DCCDL) had a rental of Rs 2,510 crore in FY19

• DLF has forecasted a rental growth of 20 per cent on compound annual growth rate (CAGR) basis

• DLF's rental platform has 32.8 million sq ft of operational assets and 3.2 million sq ft of under construction assets 

• DLF promoters sold 33.34 per cent stake in DCCDL to Singapore’s GIC for Rs 9,000 crore in 2017