The Phoenix Mills - Consumption Growth Remains Healthy: ICICI Securities
Surat mall to drive long-term growth.
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ICICI Securities Report
The Phoenix Mills Ltd. clocked Feb-23 like-to-like consumption across malls at 110% of Feb-20 levels.
As per the company, while there were some concerns of a possible demand slowdown in Dec-22, Feb-23 LTL consumption numbers remain strong at 110% of Feb-20 levels (this would have been 2% higher had two stores – Zara and Reliance Digital at Palladium, Mumbai not been shut for renovation; for Jan-23 LTL consumption growth was impacted by 3% for the same reason).
With year-to-date-FY23 (Apr-22 to Feb-23) LTL consumption at 114% of pre-Covid levels (Apr-19 to Feb-20), we model for FY23E rental income of Rs 13.4 billion (Rs 12.0 billion on LTL basis versus Rs 10.3 billion in FY20).
With Indore and Ahmedabad malls opening in Dec-22/Feb-23 respectively and Pune (Wakad) and Bengaluru (Hebbal) in H1 FY24, we expect 17% rental income compound annual growth rate over FY20-25E.
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