VIS Reaffirms MQ Rating Of AHD REIT Management Limited

VIS Credit Rating Company Limited has reaffirmed Management Quality Rating of Arif Habib Dolmen REIT Management Limited at AM-Two plus

KARACHI, (UrduPoint / Pakistan Point News - 22nd Sep, 2021 ) :VIS Credit Rating Company Limited has reaffirmed Management Quality Rating of Arif Habib Dolmen REIT Management Limited at AM-Two plus.

The rating of AHD at AM-Two plus indicates that the asset manager exhibits very good management characteristics. Outlook on the assigned rating is Stable. The previous rating action was announced on September 4, 2020, said release on Wednesday.

The assigned rating incorporates implementation of sound corporate governance and policy framework. The rating also reflects presence of experienced management and sponsor profile of Arif Habib and Dolmen Groups. AHDRML benefits from both operational experience and financial support of the sponsors in developing and managing real estate projects.

Research and investment functions of the company are considered adequate. Fund wise concentration in assets remains as the company only operates a single fund. As per management, two development REITs- Silk Islamic Development REIT (SIDR) and Silk World Islamic REIT (SWIR) are expected to begin their operations soon which consequently will mitigate concentration risk to some extent.

Financial assessment of the company incorporates weakening in profitability profile during FY20 on account of lower rental income of the fund and higher operating expenses.