TPL Properties Limited (PSX: TPLP), incorporated in 2007 and converted to a public limited company in 2016, has recorded a strong recovery in the first quarter of FY26, following challenging performance in the prior two fiscal years. The company, engaged in investing, purchasing, and development of real estate assets including residential and commercial properties, shops, plots, and houses, relies heavily on its investments in REIT funds and subsidiary operations to generate income. As of June 30, 2025, TPLP had 561.087 million shares outstanding held by 7,461 shareholders, with associated companies holding a majority stake of 37.61 percent, followed by local general public at 29.92 percent, sponsors and directors at 9.48 percent, and other investors including mutual funds and foreign shareholders.
Historically, TPLP’s topline grew only in 2019, 2020, and 2022, while net profits fluctuated and turned negative in 2024 and 2025 due to unrealized losses on investments in REIT Fund I and changes in valuation methodology. In 2019, revenue increased by 7.96 percent to Rs. 597.21 million on the back of rental and maintenance contract revisions, though the bottomline fell by 43.44 percent to Rs. 676.26 million. In 2020, despite 13.59 percent revenue growth to Rs. 678.37 million, net profit dropped sharply by 83.26 percent to Rs. 113.21 million due to increased finance costs and low fair value gains.
The year 2021 saw revenue decline by 35.38 percent to Rs. 438.39 million, while bottomline slipped by 38.14 percent to Rs. 70.03 million despite an improved gross profit margin. In 2022, the real estate sector benefitted from favorable government initiatives, and TPLP achieved record gains with topline surging to Rs. 6,431.89 million and net profit reaching Rs. 5,327.27 million, driven by the sale of projects to REIT and fair value gains on investments. The net profit margin for 2022 stood at 82.83 percent with EPS of Rs. 9.62.
Performance declined in 2023, with income dropping by 14.36 percent to Rs. 5,508.50 million, resulting in net profit of Rs. 2,908.84 million. The subsequent years 2024 and 2025 saw further challenges with negative net income of Rs. 4,020.96 million in 2024 and Rs. 1,934.27 million in 2025 due to unrealized REIT losses, higher direct operating costs, and other expenses, despite some mitigation from management fees and other income.
In 1QFY26, TPLP rebounded strongly with topline of Rs. 1,954.96 million compared to negative Rs. 480.62 million in the same period last year. This improvement was supported by unrealized gains in REIT Fund I and enhanced income from subsidiaries TPL RMC and TPL Developments. Direct operating costs fell by 27.10 percent, enabling gross profit of Rs. 1,923.15 million and a GP margin of 98.40 percent. Administrative and general expenses decreased by 3.60 percent while finance cost dropped by 56.83 percent, resulting in net profit of Rs. 1,512.35 million, EPS of Rs. 2.70, and net profit margin of 77.4 percent.
Looking forward, TPLP continues to focus on its investment in REIT Fund I, Pakistan’s first Shariah-compliant Sustainable Development REIT Fund, while exploring partnerships and real estate development opportunities to diversify revenue. Government incentives for the real estate sector, coupled with improving macroeconomic indicators such as declining inflation and discount rates, are expected to create growth opportunities for the company and the broader real estate market in Pakistan.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.