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Introduction:
Real Estate Investment Trusts (REITs) have gained prominence in Pakistan’s financial market as a means of investing in the real estate sector. In this blog post, we provide an overview of two prominent REITs in Pakistan, Dolmen City REIT and Globe Residency REIT. We delve into their current share prices, dividend payout ratios, and essential share details, giving investors valuable insights into these investment options.
What are REITs?
A REIT (Real Estate Investment Trust) is a company that owns, operates, or finances income-generating real estate. It is a type of investment vehicle that allows individuals to invest in real estate without directly owning or managing properties themselves. REITs provide an opportunity for investors to gain exposure to the real estate market and generate income through rental properties, commercial buildings, or other real estate assets.
REITs are required by law to distribute a significant portion of their earnings as dividends to shareholders. In return, they receive certain tax benefits, including the avoidance of corporate income tax, provided they meet specific requirements.
Investing in REITs offers several advantages, including portfolio diversification, access to professional management, liquidity, and the potential for regular income streams. REITs can be publicly traded on stock exchanges, allowing investors to buy and sell shares similar to stocks. They can also be privately held or non-traded, offering opportunities for longer-term investments.
Table: REITs in Pakistan
| Symbol | Name | Current Share Price |
|---|---|---|
| DCR | Dolmen City REIT | 13.83 |
| GRR | Globe Residency REIT | 11.65 |
Dolmen City REIT:
Dolmen City REIT is established under a Trust Deed executed between Arif Habib Dolmen REIT Management Limited (AHDRML) and Central Depositary Company of Pakistan Limited (CDCPL). It is governed by the Real Estate Investment Trust Regulations, 2015, promulgated and amended by the Securities & Exchange Commission of Pakistan (SECP).
Key Details:
- P/E Ratio (TTM): 3.39
Dividend Payouts:
- April 11, 2023: 4.5% (Book Closure: April 25-27, 2023)
- January 12, 2023: 4.3% (Book Closure: January 26-28, 2023)
- October 21, 2022: 4.30% (Book Closure: November 4-6, 2022)
Globe Residency REIT:
Globe Residency REIT is established under a Trust Deed executed between Arif Habib Dolmen REIT Management Limited and Central Depository Company of Pakistan Limited. It is governed by the Real Estate Investment Trust Regulations, 2015, as promulgated and amended by the Securities Exchange Commission of Pakistan (SECP).
Earnings:
- Latest EPS Upto 2023 3Q: Rs. 3.08
- EPS Last Quarter 2023 3Q: Rs. 1.01
- Last Annual EPS Upto 2023 3Q: N/A
- Price to Earnings (P/E) Ratio Upto 2023 3Q: 13.64
- Expected Price to Earnings (P/E) Upto 2023 3Q: N/A
- Expected Earning Growth Upto 2023 3Q: N/A
- Price Earning Growth Upto 2023 3Q: N/A
Conclusion:
In Short, Investing in REITs provides individuals with an opportunity to participate in the real estate sector and benefit from its potential growth. Dolmen City REIT and Globe Residency REIT are two prominent options for investors in Pakistan. By understanding their current share prices, dividend payout ratios, and essential share details, investors can make informed decisions regarding their real estate investments. Stay updated with the evolving market trends and explore the potential of REITs in Pakistan.
F.A.Qs
What is a REIT?
A REIT (Real Estate Investment Trust) is a company that owns, operates, or finances income-generating real estate properties. It allows individuals to invest in real estate without directly owning or managing properties themselves.
How do REITs generate income?
REITs generate income through rental properties, commercial buildings, or other real estate assets. They collect rent from tenants and distribute a significant portion of their earnings as dividends to shareholders.
What are the benefits of investing in REITs?
Investing in REITs provides diversification, access to professional management, liquidity, and the potential for regular income streams. REITs are also traded on stock exchanges, making it easier for investors to buy and sell shares.
Are REITs subject to taxes?
REITs are required to distribute a significant portion of their earnings as dividends to shareholders, which allows them to avoid corporate income tax. However, shareholders are typically taxed on the dividends they receive.
How can I invest in REITs?
Investors can invest in REITs through buying shares on stock exchanges or by participating in private offerings. It’s advisable to consult with a financial advisor to understand the investment options available and choose the ones that align with your investment goals and risk tolerance.
