Portfolio expansion and development of new asset classes

The roots of the new direction of Compagnie Immobilière Ltd (CIL) lie in its good performance in the second half of the year ending June 30, 2024. The performance is mainly due to the acquisition of Quay 11 in April, the arrival of new tenants, lease renewals and an increase in contractual rents, which made a positive contribution to revenue growth of 15%.

When a company, after analyzing its latest financial statements, performs well from the perspective of its board members, but decides not to review its strategy to seek new opportunities and growth, this can constitute a position with serious consequences. This is a mistake that the CIL committee will not make. Because, at the second analyst meeting held on August 22 at Nénuphar (Currimjee Group’s co-working space in Currimjee Arcade), the management revealed the outlines of a new strategic direction brought about by the good performance of the latest financial report. The focus will now be on expanding the existing portfolio and developing new asset classes.

Sanjiv Mihdidin explains, executive Director CIL and Chief Executive Officer Currimjee Real Estate in front of analysts and investors: “The objectives of this approach include diversifying and strengthening our income base while seeking to increase the value of our shares through regular dividend distributions, with the primary goal of always seeking to achieve strong financial performance.”

All performance measures were in the green for the semester ending June 30. These included: Profit after tax increased by Rs 3.7 crore from Rs 23.1 crore to Rs 26.8 crore; Portfolio occupancy was 86% with a weighted average lease expiry of 5.8 years; Revenue for the period ended December 31, 2023 jumped sharply to Rs 141.8 crore, compared to Rs 40.5 crore in the same period of 2022; The company’s share price, which was valued at Rs 10 in 2022, recorded an increase, peaking at Rs 27.60 at the close of 2023 at Rs 25.45, with a dividend yield level of 3.6%; After declaring an interim dividend of Rs 0.35 per share for the first time last year, the CIL board decided to pay an interim dividend of Rs 0.46 per share to shareholders mid-year. Factors that helped CIL achieve such performance include the acquisition of Quay 11 in April 2024, arrival of new tenants, lease renewals and contractual rent increases, which contributed positively to recording 15% growth in revenue.

This has an important place in the company’s development strategy, given that all economic operators are obliged to ensure compliance with specific standards of a sustainable development model. It is in this context that CIL must commit itself to implementing sustainable environmental practices. These include: installing solar panels and lighting systems, favoring the use of light-emitting diodes due to their advantages in terms of electrical energy consumption, lifespan and safety; rainwater harvesting; responsible recycling and disposal of waste in company-owned properties, or recycling of waste oil from food outlets.

Phoenix Center continues to regain its place among high-performance green buildings, meeting the rating system’s certification rules. Leadership in Energy and Environmental DesignCIL does not want new elements to disrupt this direction. That is why it has set up a structure to ensure that the requirements of new tenants are taken into account and their possible implementation, helping to strengthen the company’s interest in striving to bring the obligations related to the sustainable development model closer together.