ISE Towers REIT Management Company (“ISE Towers” or “the Company”) is licensed as a Non-Banking Finance Company (NBFC) under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003, by the Securities and Exchange Commission of Pakistan. The license was granted in 2016 to enable the Company to form and launch Real Estate Investment Trusts (REITs) under the Real Estate Investment Trust Regulations, 2015.

ISE Towers REIT Management Company Ltd was initially incorporated as Islamabad Stock Exchange (Guarantee) Limited (ISE). Later on, after the integration of Karachi Stock Exchange (KSE) and Lahore Stock Exchange (LSE), on January 11'2016, the Company got converted from ISE to a REIT Management Company under the repealed Companies Ordinance, 1984. As a consequence of this approval of integration, the name and scope of the Company have been changed. The Company is in the process of launching its Rental REIT Scheme. For this, the dominating asset owned by the Company "ISE Towers" has been earmarked for transfer to the scheme.

The principal activities of the Company is to form, launch and manage Real Estate Investment Trust (REIT) under REIT Regulations, 2015. The Company owns a multistory building “ISE Towers” situated in Blue Area Islamabad.

The shareholding pattern of the Company is well diversified comprising of 218 shareholders. The majority of the shares are held by institutions and corporate bodies.

Building on years of experience in capital market, equity brokerage, financial and banking services etc

Majority of the shareholders of the Company have well diversified experience in capital market, equity brokerage, financial services, portfolio management, investment advisory and financial services, banking and technical analysis.

The financial strength of the sponsors remains strong due to their diversified investment portfolios.

The Board comprises 11 members, which include four independent directors, six non-executive directors,  and one executive director.

All the directors are seasoned professionals and possess manifold experiences in the relevant fields. Board's Chairperson and non-Executive Director, Mr. Haroon Ihsan Piracha, is a seasoned professional with 20+ years of experience across politics, corporate, and agriculture, currently serving as CEO of HP Securities and President of the National Cooperative Supply Corporation. He is a former National Assembly member, board director of major financial institutions, and a distinguished academic with international representation and honors. Adil Khan Swati, Non-Executive Director at ISE Towers REIT Management Company, brings over a decade of expertise in capital markets, commodities, manufacturing, real estate, and healthcare through his leadership of the Pine Group of Companies. Mr. Haider Khaqan Abbasi is a non-Executive Director and development sector professional with nearly a decade of experience in CSR-driven social impact projects, currently engaged in commodity trading and serving on the management team of Subway Pakistan. Ms.Marium is a non-Executive Director and Harvard-educated leader, entrepreneur, serving as Director at ISE Towers REIT and Executive Director of Tim Hortons and Subway Pakistan, with extensive experience in strategic leadership, brand development, and commodity trading. Ms. Minahil Ali is an independent Director, Advocate of the High Court with 9+ years’ experience in corporate governance, compliance, and real estate law, currently serves as Governance Lead at a fintech and Independent Director at an NBFC. A Certified Director from LUMS with an LL.M. from Brunel. Mr. Muhammad Asad Ghani is an independent Director and CEO of Optimus Construction since 2017, has 14+ years of leadership experience spanning construction, IT, and automotive sectors, including a Hyundai Nishat Motors dealership. Maj Gen Muhammad Farooq Iqbal, HI(M) (Retd), serves as an Independent Director and a former Director of Banking & Industries at Fauji Foundation and Advisor to Askari Bank, with board experience in leading Fauji Group companies. He holds advanced degrees and certifications in defence, finance, and management from QAU, Cranfield University, LUMS, and NUST. Mr. Mohammad Masud is an independent director and Director at ISE REIT Management Company, is an entrepreneur with 25+ years of experience in real estate, construction, and business development. He also leads Chenab Associates and Chenab Commodities, and has held key roles in FPCCI and ICCI to promote growth and sustainable development in Pakistan’s real estate sector. Mr. Sohail Altaf, Non-Executive Director and CEO of Central Motors, is a distinguished business leader with decades of service in FPCCI, RCCI, and multiple trade bodies, earning national awards for his contributions. A former Pakistan Air Force officer, he has represented Pakistan in numerous international delegations and holds a Lifetime Achievement Award from RCCI. Mr. Zahid Latif Khan, founding chairman of ZLK Securities, has over 30 years of leadership in Pakistan’s capital markets and serves as Director of ISE REIT and LSE Financial Services, as well as Vice Chairman of the Pakistan Stock Brokers Association. He is recognized for pioneering contributions, including the unification of Pakistan’s stock exchanges into the PSX.

The Board of the Company has the overall responsibility for establishment and oversight of risk management framework. There are four board committees: i) Audit Committee, ii) Human Resource and Remuneration Committee iii) Nomination Committee iv) Risk Management Committee.

BDO Ebrahim & Co. Chartered Accountants has been appointed as external auditor of the Company. The firm  is QCR rated by ICAP and are in the A Category of SBP’s panel of auditors. The auditors expressed an unqualified opinion on the financial statements, indicating that the financial reporting presents a true and fair view in accordance with the applicable financial reporting framework, and that no material misstatements were identified during the audit for the period ended June 30, 2025.

The Company’s operations are grouped under six departments. These include (i) Internal Audit/Compliance (ii) Operations and Management (iii) Accounts & Finance (iv) Security Management (v) Administration/HR (vi) Information Technology. Each Department Head reports directly to the COO/CFO and the head of internal audit reports to the Audit Committee.

The Company has a mix of diverse experienced and skilled management. Mr. Sagheer Mushtaq, CEO of the Company, has 16+ years of experience in finance, operations, and regulatory compliance, previously serving in key roles at ISE and PSX. He is a commerce graduate and has over fifteen years of diversified experience in the field of finance, operation and regulatory compliance. Mr. Zeeshan Shafique (ACA), Company Secretary & CFO of ISE Towers REIT, is a Chartered Accountant with 16+ years of experience in audit, finance, corporate law, and risk management. He began his career with PwC’s member firm A.F. Ferguson & Co. and previously served at Premier Group before joining ISE REIT in 2017. Mr. Syed Nayyar Ashfaq, Senior Manager Operations & Administration at ISE Towers REIT, has been associated with the organization since 1992 (with a brief gap) and oversees the Operations & Maintenance Department. An MBA with an HRFP Diploma from SZABIST, he is responsible for ensuring the smooth functioning of ISE Towers.holds an Executive MBA in HRM and a B.Com. He has 29 years of total experience, including 10 years with the Company, and reports to the CEO. Lt. Col (R) Fateh Khan has been serving as Chief Security Officer & Manager HSE of ISE REIT since 2021, bringing extensive military, UN peacekeeping, and corporate security experience. Holding a Master’s in International Relations, he has led HR, admin, and security roles in major organizations, ensuring a secure and compliant business environment.

Considering size of the Company and nature of business, currently there are no management committee to monitor performance and assure adherence to policies and procedures. The matters are discussed and settled at the individual levels with discussion with the top management.

Due to current nature of operations, the Company is using different Management Information Systems to manage day to day operations and management reporting, which are Sidat Hyder Financial Information System (FIS), Billing Control & Management System (BCMS) and Building Management System for HVAC system.

Risk management policy is well documented and approved by the Board. It covers operational risk, credit risk, f inancial risk, reporting and regulatory compliance. The policy framework enables the management to achieve operational efficiency and proper monitoring.

REITs (Real Estate Investment Trusts) add transparency to the real estate sector and depth to capital markets, offering mutual fund–like investment opportunities through Development, Rental, and Hybrid structures. In Pakistan, REITs are expanding, with 31 registered RMCs and 16 schemes totaling PKR ~176.4bln as of Dec’24; Dolmen City REIT and Globe Residency REIT are the two listed on PSX. The sector maintains low leverage (~2.3% in FY24), reducing interest rate risk, while ROE averaged ~17.7% over FY20–24, rebounding strongly to ~40.9% in FY24. Rental REIT occupancy remains high (~97–98%), though operating margins have narrowed (~84.3% in FY24 vs. ~86.9% SPLY) due to rising expenses. In FY24, REIT revenues grew ~12.7% YoY, but higher costs reduced margins, a trend persisting into 1HFY25. New property-related taxes introduced in FY25—including Capital Gain Tax (15–45%), Capital Value Tax (2%), Federal Excise Duty (5%), and Advance Property Tax—are expected to influence market dynamics. Meanwhile, RMCs reported lower fund management income (PKR ~1.27bln vs. ~1.48bln in FY23) and reduced management fees, though investment income relative to AUMs improved to ~14.3% in FY24. (Source: PACRA research)

During FY25, the Company’s operating income (rental income) clocked in at PKR~411mln (FY24: PKR~378mln). The operating expenses increased to PKR~125mln during the period ended FY25 (FY24: PKR~97mln).

In FY25, total earning assets accounted for ~ 87% of the overall asset base, compared to ~84% in FY24. Other income decreased to PKR 200mln from PKR 236mln year-on-year for the period ending FY25. The share of profit from associated companies reached PKR 223mln during FY25, up from PKR 127mln in the same period last year. This includes a net profit of PKR 734mln FY25.

The Company is actively exploring new real estate opportunities under the REIT framework and intends to mobilize funds through the forthcoming public offering of the ISE REIT and the sale of certain equity investments. As a REIT Management Company, its credit risk mainly stems from tenant exposure; however, given that its tenants include multinational corporations, leading banks, and reputable institutions, the Company’s overall credit risk remains minimal.

The primary source of market risk of the Company is interest rates. The Company’s exposure to market risk is low as the Company’s investment in T-bills during FY25 is PKR~816mln, yielding a return of 10.87% to 12.10% (FY24: PKR~693mln).

The Company has implemented a comprehensive investment policy designed to ensure prudent fund management, emphasizing principal safety, high liquidity, and optimal returns. The primary focus remains on capital preservation and liquidity, with the Board retaining the authority to review the policy as and when deemed necessary.

The Company has PKR~8,286mln capital at end of FY25 which is well above minimum regulatory requirements for REIT Management companies i.e. PKR~50mln. The company has no long and short term borrowings.