For Phoenix Mills, the financial year FY25 brought in a mixed fortune. While there was an uptick in retail and hospitality occupancies, office occupancies witnessed a decline. Residential business in Q425 showed a significant increase in gross sales though there was a substantial slowdown in the collection of receivables. Overall, the revenue registered a marginal decline.

According to a report by Motilal Oswal Financial Services Limited (MOFSL) report, the company reported revenue of INR10.2billion (16% below estimate), while EBITDA came in at INR5.6 billion (27% below estimate). Adjusted PAT stood at INR2.7billion (25% below estimate). In FY25, revenue was down 4% YoY at INR38billion, broadly in line with estimates. EBITDA declined 1% YoY at INR22billion (9% below estimate). Adjusted PAT stood at INR9.8billion, down 10% YoY (9% below estimate).

Retail registers higher occupancy

In 4QFY25, amidst 15% YoY increase in total consumption at INR 32billion, retail registered higher occupancy. This was driven primarily by Phoenix Palassio and due to the continued ramp-up at Phoenix Mall of the Millennium and Phoenix Mall of Asia, and expansion of Phoenix Palladium. In FY25, on an overall basis, jewellery/hypermarkets—key categories—outperformed with 19%/3% YoY growth, while electronics stood at 6% YoY. The entertainment and multiplex segment rose 12% YoY.

Gross retail collections at INR8.3billion were up 6% YoY. The company reported rental income of INR4.8billion, up 8% YoY. In FY25, retail collections and rental income stood at INR33.1 billion and INR19.5billion, up 22% and 18%, respectively. Retail EBITDA stood at INR5.0 billion in 4QFY25, up 11% YoY. In FY25, it was 20% at INR20. 1billion.The weighted average trading occupancy stood at 91% (vs 87% in 4QFY24). Palladium Ahmedabad; Mall of the Millennium, Pune; and Mall of Asia, Bengaluru witnessed a push in trading occupancy to 95%/92%/83% (vs 86%/76%/57% in 4QFY24).

Hospitality on a high; Office occupancies decline

Occupancy Hospitality segment saw rising occupancies – 92% for St. Regis in 4QFY25 (vs 84% in 3QFY25) and 87% for Marriott Agra. During the same period, St. Regis/Marriott Agra reported an ARR of INR23,542/INR6,977, up 11%/10% YoY.Total income in 4QFY25 for St. Regis/Marriott Agra was INR1.5billion/INR188million, up 4%/4% YoY. EBITDA stood at INR760million for St. Regis and INR86million for Marriott, Agra, up 10% and 35% YoY, respectively, with margins of 51% and 46%.

Occupancy in the office portfolio declined by 3% to 67%. Gross leasing in FY25 stood at 0.3msf, with 0.1msf contributed by new assets in Pune and Bangalore. As much as 4msf of area was under development. Income from commercial offices in 4QFY25 stood at INR530m, up 8% YoY, and EBITDA came in at INR330m, up 10% YoY. In FY25, income was at INR2.1billion, up 10% YoY, while EBITDA was at INR1.3billion, up 19% YoY.Occupation certificates were received for Phoenix Asia Towers, Bangalore (GLA of ~0.80msf) and Tower 3 of Millennium Towers, Pune (GLA of ~0.52msf).

Resurgence in residential sales

In 4QFY25, the company achieved gross sales of INR77 crore, up 40%, compared to INR 55 crore in the previous period. Collections, however saw a decline of 33% to INR 54 crore from INR 81 crore., with ASP at INR25,900psf. In FY25, gross sales stood at INR2.1billion and collections were at INR2.2billion. ASP stood at INR26,000psf.

Growth Outlook 

On the retail front, while new malls continue to ramp up well, Phoenix is implementing measures to accelerate consumption at mature malls. These initiatives, along with a further increase in trading occupancy, will help sustain healthy traction in consumption. The long-term consumption growth is expected to be atleast 7-8%. The company plans to expand its residential portfolio by 1 million sq ft by FY27.In commercial office segment Phoenix plans to add 4 million sq ft of office space by FY27, bringing its total office portfolio to 7 million sq ft. The company is gearing up to expand its hospitality portfolio to 988 keys by FY 27, with the addition of 400 keys in Bangalore.