DLF Ltd has appointed investment banks JP Morgan and Morgan Stanley to advise the company on listing real estate investment trusts (REITs), it said in an investor presentation after the third quarter financial results were announced.

“With the REITS around the corner, the company is committed to forming two REIT platforms to monetise almost 30 million sq ft of commercial assets, thereby, increasing cash flows and reducing debt,” the company said.

It will create two REIT platforms next year – one for Office and the other for Retail, and will target first filing within fiscal year 2016.

The Board has appointed a committee of independent directors, which has named two investment banks —JP Morgan and Morgan Stanley — to advise the company for REITs, which will create sustainable, long-term income for DLF and its shareholders, it said. The committee will await the Budget 2015 tax proposals before taking a call on the strategy forward.

On the current outlook for sales, DLF said it will take at least 12-18 months for the sales momentum to revert to targeted levels. The company added it is in dialogue with a few private equity players for part cash out in some marquee projects before launching in fiscal 2016.

Net profit falls

In the third quarter, DLF’s debt stood at ₹20,336 crore. The company has reported a 9.2 per cent drop in net profit at ₹131.79 crore for the December quarter, compared with ₹145.29 crore a year ago.

Total income from operations fell 4.9 per cent to ₹1,956.72 crore for the quarter, from 2,058.42 crore in the same period last year.

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