Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has upgraded the REIT Manager Rating for JS Investments Limited, reflecting the company's ongoing operational growth and expansion of its Real Estate Investment Trust (REIT) platform. This upgrade is primarily driven by the expansion of the JS Rental REIT, which has seen significant growth in recent months.
JS Investments Limited, known as JSIL-RMC, has been managing the JS Rental REIT, which includes "The Center," a commercial building situated in a prime area of Karachi. The rental REIT has expanded its holdings from two floors to seven, increasing the fund size from PKR 658 million to PKR 2.2 billion. The 13th floor has been successfully leased to REGUS, while the 20th floor is occupied by Jahangir Siddiqui & Co. Ltd. and its subsidiary, Energy Infrastructure Pakistan Holding Limited.
Further supporting the rating upgrade is the launch of the JS Hotel REIT, which aims to diversify the company's portfolio. This new venture, with an initial fund size of PKR 3 billion, will involve the development of a Hilton Hotel in Hyderabad. Strategic investor Gohar Builders has pledged significant cash commitments to this project.
JS Investments Limited has also reported a substantial increase in management fees and profitability during the first nine months of the current year. The company's equity has shown growth, and its management team continues to focus on technology and revenue stability.
The rating considers the company's experienced leadership, strong governance, and potential synergies with JS Bank Limited. However, the rating remains contingent on JSIL-RMC's ability to maintain its market share and investment processes. Any prolonged downturn in fund performance or market share loss could affect the rating.