TPL Properties Limited (PSX: TPLP) reported a significant increase in its net loss for the quarter ending September 2024, reaching Rs884.33 million [LPS: Rs1.58]. This marks a 296.9% rise compared to a net loss of Rs222.82 million [LPS: Rs0.40] during the same period last year (SPLY). The company’s financials for the first quarter of FY25 reveal key challenges from losses on REIT investments and increased finance costs.
Revenue Performance: Setback on REIT Investments
The company’s revenue, comprising unrealized gains or losses on REIT fund investments and gains or losses from property sales, posted a substantial loss of Rs697.6 million, compared to a much lower loss of Rs21.2 million in Q1 FY24.
| Metric | Q1 FY25 vs. Q1 FY24 |
|---|---|
| Income/ (Loss) | Rs(697,599) vs. Rs(21,300) |
Increase in Other Income
TPL Properties reported a 33% rise in other income, reaching Rs65.85 million in Q1 FY25, up from Rs49.51 million in Q1 FY24. While this increase helped to partially offset the losses, it was insufficient to counterbalance the revenue decline from REIT investments.
| Metric | Q1 FY25 vs. Q1 FY24 |
|---|---|
| Other Income | Rs65,846 vs. Rs49,510 |
Reduction in Administrative Expenses
Administrative expenses declined by 26.61% to Rs80.86 million in Q1 FY25, down from Rs110.18 million in Q1 FY24. This reduction reflects effective cost management efforts.
| Metric | Q1 FY25 vs. Q1 FY24 |
|---|---|
| Administrative Expenses | Rs(80,858) vs. Rs(110,181) |
Increase in Finance Costs
The finance costs rose by 21.91%, totaling Rs171.71 million in Q1 FY25 compared to Rs140.85 million in Q1 FY24, adding further pressure on the company’s net income.
| Metric | Q1 FY25 vs. Q1 FY24 |
|---|---|
| Finance Costs | Rs(171,714) vs. Rs(140,848) |
Conclusion: Financial Pressures Amid Market Volatility
TPL Properties Limited’s Q1 FY25 results underscore ongoing financial pressures from a substantial REIT-related revenue loss and rising finance costs. Despite increases in other income and reductions in administrative expenses, the company’s future success may hinge on stabilizing its REIT portfolio and managing borrowing costs to mitigate further losses.
