DLF annual report highlights

Highlights from DLF’s FY08 Annual Report

• DLF sees FY09 as a challenging year given the liquidity and inflationary issues in the economy. It expects FY09 to be a year of consolidation.
• Targets: 1) Maintain gearing at 51% to ensure that the company can easily tide over any downcycle in the business; 2) be FCF-positive by FY11; 3) plans to develop ~25m sq ft of retail space in the leased mall category over the next five years; plans to have 4,000 hotel rooms under construction in FY09; and 4) aims at increasing projects under construction to ~100m sq ft by end-FY09, from 63m sq ft in 1Q FY09.
  
• DLF’s rental earnings, which were Rs2.8bn in FY08, are set to grow further with an increase in leased office space and retail malls.
• To ensure adequate replenishment of land resources, DLF has carved out a land replenishment fund, wherein 15% of the sale value of its real estate development is credited – should ensure consistent development pipeline.

DLF has announced both a buyback of Rs1,100 crore to prop up its dangling share price. Next, surprisingly in the next month of buyback, it announced capital raising of Rs. 11,000 crore. Isn't it a conflicting strategy. DLF has failed to list DLF Assets which had plans to raise Rs 9,500 crore from Singapore REIT. Lets see what else is DLF upto in the coming months.