PACRA maintains REIT fund rating of JS Rental REIT

The JS Rental REIT Fund (or the "Fund"), a perpetual closed-end scheme, aims to provide stable returns through investments in fully developed, income-generating real estate assets in Pakistan. The assigned rating incorporates stable returns, a strong tenant profile, and adequate occupancy levels. The RMC's sound governance, an experienced management team, and an adequate control environment bode well for the assigned rating. The compliance function ensures adherence to all applicable internal and external rules and regulations. The JSIL-RMC is deriving its core income from its dominating asset, "The Centre". The building targeted for the REIT scheme is located on Abdullah Haroon Road, Saddar, Karachi. The site has a land area of 3,988 sq. yds. The building is a state of the art with branded lifts installed, an HVAC plant, and the latest security structure, along with ample car parking space, a cafeteria, and a gym. Out of the total 22 floors, with the ground and mezzanine floor dedicated to the shopping mall, six floors are parking floors, the 8th floor is MEP, and the 9th-12th floors are currently vacant. The investors of the JS Rental REIT Fund include JS Lands (Private) Limited, which holds a majority stake of 94.38% of the Fund’s units, while the remaining 5.62% units are held by JS Investments Limited. JS Investments Limited-RMC added five additional floors (9th–13th) to the rental REIT, increasing the fund size from PKR 658 million to PKR 2.2 billion as of Sep’25 and expanding the total floors under the REIT from two (19th and 20th) to seven (9th–13th, 19th, and 20th). The 13th floor has been leased to REGUS, a globally recognized provider of flexible workspace solutions with a diversified corporate clientele, supporting stable rental cash flows; the lease agreement includes an annual rental increment of 10%. The 20th floor is rented to Energy Infrastructure Pakistan Holding Limited (EIPHL), a private holding company and a wholly owned subsidiary of Jahangir Siddiqui & Co. Ltd. (JSCL), engaged in strategic investments across the energy and allied sectors, with a 5% annual rental increment. The rental agreements for the remaining floors are in process.
The JSIL-RMC is primarily deriving its core income from management fees, which stood at PKR 1.7mln as of Sep’25 (Sep’24: PKR 1.8mln). During the period under review, the REIT reported a loss after tax of PKR 49mln in Sep’25, compared to a profit of PKR 3.6mln in Sep’24, mainly reflecting higher expenses and valuation-related adjustments. The equity base remained unchanged at PKR 2,167mln as of Sep’25 (Sep’24: PKR 2,167mln), providing balance sheet stability. Meanwhile, total assets increased to PKR 2,324mln in Sep’25 from PKR 2,281mln in Sep’24, indicating balance sheet expansion during the period.
The rating would remain dependent on the sustainability of the JSIL-RMC, successful fundraising, achievement of milestones, and listing of the Fund. Successful completion of each project falling under the REIT scheme and the generation of the expected return would remain critical for rating. Moreover, upholding the governance framework is vital.

About the Entity
JS Investment Limited ("JSIL" and "Company"), established in 1995, is listed on the Pakistan Stock Exchange. The Company is part of the Jahangir Siddiqui (JS) Group. JS Bank Limited holds ~85% shareholding in the Company. JS Group has a strong presence in the financial sector with entities operating in the banking, insurance, brokerage, and asset management sectors. The group has recently ventured into energy infrastructure and OMC segments. JSIL possesses licenses for Asset Management, Investment Advisory, Private Equity/Venture Capital, and REIT management. In addition, the Company also acts as Pension Fund Manager under the Voluntary Pension System Rules, 2005. The JSIL-RMC is assigned an RM3 rating, while JS Investments Limited (the AMC) holds a strong AM1 rating assigned by PACRA.
JSIL’s control vests in the eight-member board of directors, including the CEO. There are two independent directors, while all other directors, except the CEO, are non-executive. Assets under the management of the company are spread across twenty funds in fifteen different Conventional & Shariah-compliant categories, 4 voluntary pension schemes, and one Exchange Traded Fund.