DLF’s Rental Arm DCCDL Achieves 11% Increase in Office Rental Income
DLF Cyber City Developers Ltd (DCCDL), the rental arm of real estate giant DLF, has recorded a considerable 11% annual increase in office rental income. During the first quarter of the fiscal year, the company generated Rs 9.42 billion in office rental income, reflecting higher demand for its premium workspace. DCCDL is a joint venture between DLF and Singapore sovereign wealth fund GIC, with DLF holding a 66.67% stake and GIC owning 33.33% of the venture.
Rental Income Soars for DCCDL
According to the latest investor presentation, DCCDL experienced a significant upswing in rental income. The revenue from office buildings rose from Rs 8.51 billion in the same period last year, reaching Rs 9.42 billion this year. Additionally, rental income from retail real estate witnessed a 9% growth, surpassing Rs 2.10 billion in the first quarter of the fiscal year, compared to Rs 1.92 billion the previous year.
DLF attributed its success to the accomplishment of “double-digit rental growth through organic growth and new developments” in the commercial real estate segment. Moreover, the company highlighted a dramatic surge in retail presence and unveiled plans to expand its retail portfolio, aiming to double it within 4-5 years. Currently, DCCDL manages a vast portfolio of 42 million square feet, boasting an impressive occupancy rate of 93%.
Strong Financial Performance for DCCDL
DCCDL’s financial performance has been impressive, with its revenue growing by 10% annually to reach Rs 153.3 billion during the April-June period of 2024-25. Comparatively, the revenue amounted to Rs 141.1 billion in the previous year. Furthermore, DCCDL witnessed a notable 20% increase in profit after tax, jumping from Rs 39.1 billion to Rs 47 billion in the corresponding period of the prior year.
Feeling optimistic about its rental business, DLF emphasized that it is committed to strengthening its rental portfolio and achieving robust growth. The company intends to multiply its capital expenditure commitments to accelerate its developments and drive its rental business forward.
DLF’s Rich History and Development Potential
With a legacy spanning over seven decades, DLF has successfully executed more than 178 real estate projects, encompassing over 349 million square feet. As a pioneer in the industry, DLF demonstrates a vast development potential of 220 million square feet, spread across residential and commercial segments.
DLF executes its real estate business through two distinct pathways—the Development Business, primarily focusing on developing and selling residential properties, and the Annuity Business, centered around developing and leasing commercial and retail properties. This diversified approach allows DLF to explore various opportunities and leverage different market sectors.
In conclusion, DLF’s rental arm, DCCDL, has achieved remarkable growth in office rental income as a result of increasing demand for premium workspace. The company’s financial performance has been robust, with a substantial increase in revenue and profit after tax. With its extensive development potential and ambitious expansion plans, DLF sets a promising trajectory among India’s real estate giants.
