TPL REIT Fund ITPL (PSX:TPLRF1)
Excerpt from TPL REIT FUND I Director's Report -2025
" The government has reintroduced several incentives to support growth and formalization of the real estate sector. The withholding tax on property purchases has been reduced, making transactions more affordable. The 3% federal excise duty imposed in FY25 has been withdrawn, while tax credits for house loans have also been restored. However, the exemption from capital gains tax on transfer of property to REIT schemes under the Second Schedule of the Income Tax Ordinance was not reinstated, which we believe remains essential to promote the REIT industry.
Despite these measures, property prices posted only modest growth during FY26. Going forward, prices are expected to rise gradually amid an improving economic environment. The construction industry is also poised for a recovery, supported by declining inflation and lower interest rates. Average steel prices declined from around PKR 274,000/ton in FY24 to PKR 257,000/ton in FY26, while cement prices largely remained range-bound between PKR 1,350–1,700 per 50kg bag during FY26."
https://financials.psx.com.pk/lib/DownloadPDF.php?id=266818
TPL REIT Management Company Limited, a wholly owned subsidiary of TPL Properties Limited, launched Pakistan's first Shariah-compliant hybrid REIT, TPL REIT Fund I. The Fund aims to deliver long-term NAV appreciation and regular dividend distributions to unitholders by investing in sustainable real estate assets across Pakistan. Its current portfolio comprises three projects: Mangrove, a master-planned mixed-use community; One Hoshang, a premium residential apartment tower; and Tech Park, Pakistan's first dedicated technology park.
Net Asset Value; Rs 18 per unit
Investment Property Valuation Methodology:
The development property was valued in accordance with International Valuation Standards (IVS) using the residual value approach, a hybrid of the market, income, and cost approaches. The valuation is based on the completed gross development value, less estimated development costs and the developer's profit, to arrive at the property's residual value. The fair value is classified as Level 3 in the fair value hierarchy due to the use of significant unobservable inputs, including estimated construction costs, contingencies, and the developer's profit margin.
The ultimate listed sponsor of TPL REIT Fund I is TPL Properties Limited (PSX: TPLP) through its wholly owned subsidiary, TPL REIT Management Company.
