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Subpar performance of residential segment drags overall performance

Targets completion of Pune and Chennai offices in 2025 Financial Performance

* The company reported revenue of INR9.8b, -1%/6% YoY/QoQ (6% below estimate), and EBITDA came in at INR5.5b, flat/7% YoY/QoQ (10% below estimate). The margin stood at 56.7%, up 73bp/30bp YoY/QoQ (246bp below our estimate).

* In 3QFY25, Phoenix Logistics and Industrial Parks Private Limited (PLlPPL), a subsidiary of Phoenix, divested its entire shareholding in Janus Logistics and Industrial Parks Private Limited (100% subsidiary) for a consideration of IR0.5b. PAT of INR0.2b recognized by PLIPPL in this transaction is treated as an exceptional item for Phoenix Mills.

* Adj. PAT was -5%/21% YoY/QoQ at INR2.6b (6% below estimate). The margin was 27.2%, -117bp/339bp YoY/QoQ (17bp above estimate).

* In 9MFY25, revenue was up 5% at INR28b. EBITDA was up 3% at INR16b. The margin was down 76bp YoY at 57.3%. Adjusted PAT stood at INR7b, down 7% YoY. PAT margin was at 25.6%, down 332bp YoY.

Retail Business

* Total consumption in 3QFY25 stood at ~INR40b up 21% YoY. In 9MFY25, it was at INR105b, up 23% YoY, and on a like-to-like basis, it grew 7% YoY.

* Gross retail collections at INR8.4b were up 21% YoY and the company reported rental income of INR5.1b up 12% YoY. In 9MFY25, retail collections and rental income stood at INR24.8b and INR14.7b, up 27% and 21%, respectively.

* Retail EBITDA at INR5.1b, was up 15% YoY in 3QFY25.

* Weighted average trading occupancy stood at 91% (v/s 87% in 4QFY24).

* Palladium Ahmedabad, Mall of Millennium, Pune, and Mall of Asia – Bengaluru witnessed a push in trading occupancy to 97%/91%/81% (v/s 86%/76%/57% in 4QFY24).

Office Portfolio

* Occupancy in the office portfolio declined by 1% to 70%. ? Gross leasing in 3QFY25 was ~0.17msf and ~4msf area was under development.

* Income from commercial offices in Q3FY25 increased 7% YoY to INR530m and EBITDA came in at INR330m, up 17% YoY.

* Gross rent in the portfolio stood at INR112 psfpm (flat v/s INR112 psfpm in 4QFY24.

Hospitality

* Occupancy was at 85% for St. Regis in 3QFY25 (v/s 83% in 3QFY24) whereas Marriott Agra was 83% occupied. In Q3FY25, St. Regis/Marriott reported an ARR of INR22,343/INR7,468 up 11%/21% YoY

* Total Income in 3QFY25 for St.Regis and Marriott Agra was INR1,480m/INR200m up 9%/16% YoY. EBITDA stood at INR720m/INR73m up 16%/22% YoY with a margin of 49% at St. Regis and 37% at Marriott, Agra. Residential Segment

* In 3QFY25, the company achieved gross sales of INR580m and collections were INR380m. In 9MFY25, gross sales were INR1.4b and collections were INR1.7b.

Debt and Cash flow

* Operating free cash flow (after interest and taxes) was INR4.1b, and excluding the residential business, it stood at INR3.8b, up 12% YoY.

* Consolidated net debt stood at INR23.2b, (v/s INR24.1b in 2QFY25)

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