This could likely have come from a further fall in occupancy levels that were at 96 percent in 1QFY20. The occupancy rates for Dolmen Mall remained stagnant at 98.3 percent in 1QFY20, while those of the Harbour Front Building saw a decline from around 97 percent to 92 percent in 1QFY20 due to vacation of office by Siemens Pakistan Engineering Limited and partial vacation by Philip Morris Pakistan Limited. However, market is expecting a decline in the mall tenancy in 2QFY20 due to decline economic slowdown, and smaller brands going out of business.

Back in FY19, the real estate investment trust closed its fifth year of operations on a high note. Revenue and income growth stood at around 10 percent year-on-year, while earnings grew by 35 percent. Remember that the REITs enjoy tax advantage, and hence Dolmen City REIT is not liable to income tax provided it meets certain conditions.

Though the country only has one REIT operating as of now, FY19 was a year of some improvement. The SECP had promulgated amendments in the regulations governing REITs in December 2018 that allowed REITs to borrow. However, a favourable tax regime is what the REIT is demanding for the proliferation of REITs in the country.