REIT returns not guaranteed, SECP warns investors
ISLAMABAD (News Desk): Real Estate Investment Trusts (REITs) offer a regulated route to bring Pakistan’s property wealth into the formal economy, but returns and liquidity are not guaranteed and depend entirely on underlying assets, scheme structure and market conditions, speakers warned at the SECP Talk Series.
The session, which focused on investor protection and market development, stressed that building confidence in REITs will require independent valuation, trustee oversight, clear disclosures and sustained investor awareness.
Commissioner Imtiaz Haider, who welcomed participants, said REITs could mobilize private investment for infrastructure such as motorways, bridges, energy parks and logistics hubs if governance standards are maintained.
Zahid Latif Khan, Chairman of ISE REIT Management Company Limited, and Muhammad Ejaz, Chief Executive of Arif Habib Dolmen REIT Management Limited, presented local case studies including ISE Towers Rental REIT worth Rs5.67 billion, Dolmen City REIT with a market capitalisation of Rs86.88 billion as of September 30, 2026, and Globe Residency REIT.
While Dolmen City REIT maintains occupancy above 97% at both its properties, speakers noted that such performance is not automatic for all schemes.
Presentations showed 29 REIT schemes were registered in Pakistan by March 2026, with an aggregate fund size of Rs173.1 billion in December 2025, compared to 1,021 listed REITs globally with a combined market capitalisation of $2.04 trillion at the end of 2024.
Speakers said the gap reflects both opportunity and risk. Without transparent pricing, credible valuations and strong trustee oversight, investors may not be able to assess true asset value or exit easily.
Muhammad Ejaz called for rationalizing property transfer duties and taxes and reviewing investment limits, but stressed that tax reforms must be paired with governance reforms.
The discussion highlighted that REITs are collective investment schemes, not fixed-return products. Their performance is linked to rental income, occupancy, property appreciation and interest rate movements.
The session was attended by SECP Chairman Dr. Kabir Ahmed Sidhu, Commissioners Imtiaz Haider, Muzaffar Ahmad Mirza and Ali Farid Khawaja, along with business leaders, students and lawyers.
The event concluded with a question-and-answer session on investor safeguards, followed by the presentation of commemorative shields to the speakers.