Karachi: TPL REIT Fund I has announced a net loss of PKR 236 million for the quarter ending September 30, 2025, a significant increase from the PKR 45 million loss recorded during the same period last year. This financial downturn was disclosed in the company’s latest unconsolidated financial statements, which were reviewed and approved by the Board of Directors, as detailed in their recent report.
As per the financial documentation, TPL REIT Fund I’s total loss incorporated a fair value loss of PKR 68 million on investments. During this period, total operating expenses were recorded at PKR 162 million, slightly up from PKR 157 million in the same quarter of the previous year. The expenses included a management fee accrued to the Management Company amounting to PKR 147 million. The loss translated to earnings per unit of PKR 0.13.
The broader economic landscape in Pakistan has shown some positive developments. The GDP growth for the fiscal year 2025 has been revised upward from 2.68% to 3.04%, as revealed in the 114th National Accounts Committee Meeting. For FY26, the State Bank of Pakistan projects growth in the range of 3.25% to 4.25%. Large-Scale Manufacturing (LSM) Index reported a 4.44% year-on-year growth for July to August FY26, with key contributions from sectors such as automobiles, food, tobacco, garments, cement, and electrical equipment.
However, challenges remain, particularly with the recent floods impacting the agriculture sector. Headline inflation rose to 5.6% in September 2025 from 3.0% in August 2025, averaging 4.2% for the first quarter of FY26. The current account deficit was reported at USD 594 million during the same period, an increase from USD 502 million the previous year, despite exports rising by 7% to USD 798 million.
According to information available from the Pakistan Stock Exchange (PSX), the KSE-100 Index continued its upward trend, closing at 165,493 points on September 30, 2025, marking a significant 32% gain during the first quarter of FY26. This growth is attributed to the perceived stability in the macroeconomic situation. In its latest meeting held in September 2025, the State Bank of Pakistan’s Monetary Policy Committee decided to keep the policy rate unchanged at 11%.
The real estate market in Pakistan is witnessing a recovery phase, aided by government incentives such as the reduction of withholding tax on property purchases and the withdrawal of the Federal Excise Duty imposed in the previous fiscal year. With declining inflation and interest rates, the construction industry is poised for recovery. The average steel prices have decreased from PKR 247,000 per ton in FY25 to PKR 240,000 per ton in the first quarter of FY26, while cement prices remain stable.
In terms of asset valuation, TPL REIT Fund I reported that its held-for-sale property, TPL Technology Zone Phase – 1 (Private) Limited, is valued at PKR 2,254 million. Meanwhile, the HKC (Private) Limited development property is valued at PKR 5,047 million, and the investment property owned by National Management and Consultancy Services (Private) Limited is valued at PKR 29,149 million.
The TPL REIT Fund I’s management has outlined ongoing and future projects, including Pakistan’s first LEED Gold residential project, One Hoshang, and The Mangroves, a mixed-use development project. These developments reflect the company’s commitment to integrating sustainability and modern architectural standards. The PACRA Credit Rating Company has assigned a REIT Fund Rating of RFR 3 (Stable Outlook) to the fund and a REIT Manager Rating of RM 3 (Stable Outlook) to its management company.