Mall operators to see 7-9% growth in their revenue in FY24
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
The mall operators are expected to see their revenue go up by 7-9 per cent this fiscal owing to buoyant retail sales and higher rental yields, said a CRISIL Ratings report.
Notably, this will be on a high base of fiscal 2023, when a return to social normalcy after mobility curbs were lifted led to substantial growth in footfalls and a robust 60 per cent rise in revenue to about 116 per cent of the pre-pandemic level, the report said.
Additionally, high occupancy levels, solid profitability backed by cost-optimisation measures and strong balance sheets will keep the credit risk profiles of mall operators healthy this fiscal, CRISIL Ratings said after analysing 28 malls.
"Robust retail sales will help mall operators increase revenue in two ways. One, occupancy of about 95 per cent will translate to better rental rates for new leases. Two, 10-15 per cent of the revenue of mall operators is linked to retail sales via revenue share income, which will increase this fiscal. Additionally, operators will get contractual rent escalations of 4-5 per cent as well, said Mohit Makhija, Senior Director.
