PACRA Maintains the rating of ISE Towers REIT Management Company Limited.

The assigned rating reflects ISE Towers REIT Management Company Limited’s (“the Company”) strong corporate governance framework, experienced management team, robust control environment, and its pioneering role in the capital markets. The rating also incorporates the Company’s stable business profile, supported by consistent operating revenues and a strong customer base.
The Company has a diversified shareholding structure comprising 218 shareholders, including corporates, Banks, DFIs, insurance companies, modarabas, pension funds, and others. Its compliance function ensures strict adherence to all applicable internal policies and regulatory requirements.
The Company’s core income is primarily derived from its key asset, ISE Towers, which maintains an almost 100% occupancy rate. The Company is in the process of converting this asset into a REIT Fund, a project that has achieved substantial progress and received the necessary approvals under the REIT Regulations, 2022. As per management’s representation, the REIT Fund is anticipated to be launched by December 2025, with the property transfer expected to be finalized simultaneously, subject to the issuance of a No Objection Certificate (NOC) from the Capital Development Authority (CDA). The initial fund size is projected at approximately PKR 2.8 billion.
For FY25, the Company’s operating income improved by 9%, reaching PKR 411 million (FY24: PKR 378 million), primarily driven by rental income from its investment property. Net profitability increased to approximately PKR 734 million in FY25 (FY24: PKR 646 million), mainly due to higher fair value gains on investment property and profits from associated companies.
The Company’s business risk profile remains favourable, supported by a portfolio of high-profile tenants, zero leverage, and a strong liquidity position. Shareholders’ equity stood at approximately PKR 8,287 million at the end of FY25, up from PKR 7,740 million in FY24.
The ratings are dependent upon the Company’s ability to sustain its healthy business profile amidst strong competition, herein, effective and prudent management of financial risk indicators remain important. Meanwhile, retention of key management, sound governance practices, and consistent performance of funds is critical. Any significant loss in market share will impact the rating.

About the Entity
ISE Towers REIT Management Company Limited was incorporated initially as Islamabad Stock Exchange (Guarantee) Limited. On January 11, 2016, ISE changed its name and scope of business and got converted from ISE to a REIT Management Company under the repealed Companies Ordinance, 1984, as a consequence of Securities and Exchange Commission of Pakistan's approval of scheme of integration under the Companies Act, 2017. Consequently, the name and scope of the Company have been changed. The principal activities of the Company are to form, launch and manage Real Estate Investment Trust (REIT) under REIT Regulations, 2022. The overall control of the Company vests with an eleven members Board. Board's Chairperson, Haroon Ihsan Piracha is a seasoned professional with over two decades of experience across Pakistan’s political, corporate, and agricultural sectors. He currently serves as CEO of HP Securities and President of the National Cooperative Supply Corporation Limited, with a distinguished career spanning public service, corporate leadership, and academic excellence. Mr. Sagheer Mushtaq is the Chief Executive Officer of the Company. He is a member of the Institute of Cost and Management Accountants of Pakistan and a commerce graduate and has over sixteen years of diversified experience in the field of finance, operation, and regulatory compliance.