TPL Properties Limited (TPLP) – March 2023

Research Team

Table of Contents

Corporate Briefing Notes

The TPL Properties Limited organized a corporate briefing session today and discussed the financial
performance and future outlook of the Company. The key takeaways from the meeting are as follows:

Key Highlights

• TPLP reported a revenue of PKR 5 billion in FY22 compared to the revenue of PKR 23 million, up by 29975%. The Company attributed the tremendous increase in revenue to the sale of TTZ at PKR 875 million and the revaluation effect of PKR 4,162 million on TPL REIT Fund units.
• Gross profit of the Company also increased by 21029% from PKR 24 million to PKR 5 billion in the corresponding period.
• Company reported an increase in the administrative expenses, up by 60%, due to the legal expenses on bonus shares and Authorized Capital. Similarly, the term loan of PKR 500 decreased the finance cost by 16% from PKR 74 million to PKR 62 million in the period under consideration.
• Other incomes were reduced, 46% down, due to the financing of investments in TFCs. The Company’s PAT was increased from PKR 72 million to PKR 4.8 billion in the period ended December, 2022.
• Earnings Per Share also witnessed an impressive increase. EPS increased from PKR 0.18 in FY21 to PKR 9.08 in the corresponding period.
• The paid-up capital of the Company increased due to the issuance of bonus shares and revenue reserves also witnessed an increase of 46% as a result of impressive profit.
• The liabilities of the Company went down due to the payables reduced as a result of 10% stake in HKC which was later transferred to REIT units.
• The increase in assets of the Company is reflected by the long-term investments in REIT Funds I, TPL-RMC, TPL Development and TPL Property Management.
• The TPL REIT FUND I consisting of residential, offices, retail, hospitality achieved a financial close of PKR 32.2 billion as of December, 2022 against the initial close of PKR 18.4 billion.
• The Company has achieved the acquisition of the Mangrove and expects to initiate the approval and tender offer after the DHA and Gos process is complete.
• For One Hoshang, the Company informed that the main work on ground will begin in 3QFY23. Also, the project will be completed by the end of FY25.
• For the Technology Park, the project is undergoing the process of detailed design and waiting for the STZ Development.
• The Company is pursuing direct listing of TPL REIT FUND I by April, 2023. The main board listing is planned to begin before June, 2025.
• The target size of the fund is PKR 80 billion and 90% of the profits are likely to be disbursed from FY26.
• After the acquisition of Pakistan’s largest telecom towers company, the Company is negotiating for the Deodar, a telecom tower company in partnership with TASC.

Important Disclosures


This report has been prepared by Chase Securities Pakistan (Private) Limited and is provided for information purposes only. Under no circumstances, this is to be used or considered as an offer to sell or solicitation or any offer to buy. While reasonable care has been taken to ensure that the information contained in this report is not untrue or misleading at the time of its publication, Chase Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time, Chase Securities and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested in any transaction, in any securities directly or indirectly subject of this report Chase Securities as a firm may have business relationships, including investment banking relationships with the companies referred to in this report This report is provided only for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report and Chase Securities accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents At the same time, it should be noted that investments in capital markets are also subject to market risks This report may not be reproduced, distributed or published by any recipient for any purpose.

Analyst certification:

The research analyst for this report, certifies that 1.all of the views expressed in this report accurately reflect her personal views about the subject and part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst in this report.

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