PACRA Upgrades REIT Manager Rating of JS Investments Limited | RMR

The rating upgrade of JS Investments Limited (“JSIL-RMC” or the “Company”) reflects sustained growth in its operations and the continued expansion of its REIT platform, led by the expansion of the JS Rental REIT. Previously, the RMC was managing the JS Rental REIT, which comprises the building, “The Center,” located on Abdullah Haroon Road near Zainab Market, a prime commercial area of Karachi. During the year, five additional floors (9th–13th) were added to the Rental REIT, increasing the fund size from PKR 658 million to PKR 2.2 billion and expanding the total floors under the REIT from two (19th and 20th) to seven (9th–13th, 19th, and 20th). Tenancy agreements for most newly added floors are under negotiation; however, the 13th floor has been leased to REGUS, a globally recognized provider of flexible workspace solutions with a diversified corporate clientele, supporting stable rental cash flows; the lease agreement includes an annual rental increment of 10%. The 20th floor has been leased to Jahangir Siddiqui & Co. Ltd. (JSCL) and Energy Infrastructure Pakistan Holding Limited (EIPHL), a wholly owned subsidiary of JSCL, which is engaged in strategic investments across the energy and allied sectors. The lease carries an annual rental increment of 5%.

The continued expansion of the Company’s REIT platform is further supported by the launch of the JS Hotel REIT, which is expected to enhance portfolio diversification and increase REIT management fees. The initial fund size of the JS Hotel REIT is expected to be PKR 3 billion, comprising a non-cash investment of up to PKR 1 billion and cash capital commitments of up to PKR 2 billion from a strategic investor, Gohar Builders, which has successfully delivered 17 projects to date. The REIT is structured as a Hybrid REIT, with the underlying project being the development of a Hilton Hotel in Hyderabad. Consequently, the total REIT assets under management have increased to PKR 5.2 billion. The Company’s focus on strengthening its technology platform and ensuring revenue stability through a diversified product mix—comprising fee income from CIS, REITs, and SMAs—continues to support the assigned rating. During 9MCY25, the Company reported a 131% increase in management fee, reaching PKR 795mln (9MCY24: PKR 343mln). Supported by higher core revenues, realized/unrealized investment gains, and dividend income, profitability rose to PKR 370mln (9MCY24: PKR 256mln). The Company's equity stood at PKR 2.5bln as of 9MCY25 (Dec'24: PKR 2.1bln). The assigned rating also draws comfort from the Company’s experienced management team, strong governance framework, and effective risk and compliance oversight. Furthermore, the rating finds comfort in the potential synergies from JSIL-RMC’s association with JS Bank Limited and the established presence of JS Group in the financial sector.
The rating is dependent upon the Company’s ability to sustain its market share and uphold strong investment processes and control environment. Meanwhile, retention of key management, sound governance practices, and consistent performance of funds is critical. Any sustained downturn in fund performance and/or significant loss in market share will impact the rating.

About the Entity
JS Investments Limited ("JSIL"), established in 1995, is listed on the Pakistan Stock Exchange. JSIL is part of the Jahangir Siddiqui ("JS") Group. JS Bank Limited holds ~85% shareholding in the Company. JS Group has a strong presence in the financial sector with entities operating in the banking, insurance, brokerage, and asset management sectors. The group has recently ventured into energy infrastructure and OMC segments. JSIL’s control vests in the eight-member Board of Directors, including the CEO. There are two independent directors, while all other directors, except the CEO, are non-executive. The segment of the Company has a diverse slate of funds - including conventional, shariah-compliant, exchange-traded, pension, and REIT schemes. JS Investments Limited (the AMC) holds a strong AM1 rating assigned by PACRA.