Phoenix Mills - Consumption Growth Remains Healthy: ICICI Securities
The company saw Dec-22 like-to-like consumption across malls at Rs 8.2 billion or 108% of Dec-19 levels.
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ICICI Securities Report
The Phoenix Mills Ltd. saw Dec-22 like-to-like consumption across malls at Rs 8.2 billion or 108% of Dec-19 levels. While the Dec-22 LTL growth is lower than the 15% LTL growth seen between Apr-Nov-22, we believe that a high base in Dec-19 (Black Friday sale was in Dec-19 versus Nov-22 in FY23) has had a marginal impact.
For year-to-date FY23 (Apr-Dec-22), LTL consumption growth stands at 114% of Apr-Dec-19 levels and we model for FY23E rental income of Rs 13.7 billion (Rs 12.2 billion on LTL basis versus Rs 10.3 billion in FY20).
With the Phoenix Citadel Indore mall being opened on Dec 01, 2022 (88% leased) and the Ahmedabad mall (99% leased) scheduled to open in Feb-23 and Pune (Wakad) and Bengaluru (Hebbal) in FY24E, we expect 17% rental income compound annual growth rate over FY20-25E.
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