Phoenix Mills: Consumption is growing steady but kicking of rental missing

Copyright © HT Digital Streams Limit all rights reserved. The MarketCity malls in Pune and Bengaluru are engaged in tenant and restructuring of leases, which can temper the growth prospects in the short term. Photo: Hemant Mishra/Mint Summary Rental Growth, an important re-judgment manager, remained modestly in H1FY26 about 3.5% year-on-year, which implies a limited space for a sharp recovery. The shopping mall operator, the Phoenix Mills Ltd, has shown the retail consumption in the September quarter (Q2FY26) and 12% year-on-year in the first half of the FY26 on an annual basis. The lecture was broadly in line with the expectations of analysts. Despite heavy mologets in various cities, Q2 was successively better due to traction in newer shopping centers such as Phoenix Citadel (Indore), Palladium Ahmedabad, Mall of the Millennium (Pune) and Mall of Asia (Bengaluru). The older MarketCity malls in Pune and Bengaluru are engaged in tenant and restructuring of leases, which can temper the growth prospects in the short term. While consumption growth at older shopping malls was year-on-year in Q2FY26, trade densities in the double digits have grown. ‘Trading density’ in the retail sector is sales per square foot of the mall. Key metric remains muted, but it is hardly comforting. According to IIFL Securities estimates, rental growth, an important re-judgment manager, remained in H1FY26 about 3.5% year-on-year, which implies a limited space for a sharp recovery. To be sure, Q1FY26 rental growth was 4%. The gap between consumption growth and the growth of rental income can continue in the short term, given the tenant. In his report on October 10, Nomura Global Markets Research warned against the slower consumption growth in H2FY26 versus H1FY26 due to a higher base. The visibility on the growth of rental income is also low, the report added. In the commercial portfolio, Phoenix rented 0.7 million square meters (MSF) from office space in H1, increasing the occupation in Mumbai and Pune to 76% from 67% in March. The residential segment received traction, with the Q2 sales rising to £ 139 for more than five-fold years and collections doubled to £ 115. In the hospitality company, the St. Regis Mumbai 85% occupied, a fixed year-on-year, maintained, with an average room rates at £ 17.711, up 2% in Q2FY26. The modest increase reflects the high base last year, which includes a one -time event. Phoenix plans to almost double his portfolio by FY30 through projects in Coimbatore and Mohali, and an expansion in Palladium Mumbai. The office portfolio will rise almost fourfold to 7.1 MSF by FY27, while new hotels, including 400-key Grand Hyatt Bengaluru, will increase hospitality capacity. Meanwhile, the performance of the share has been unwavering, so far so far in this calendar year. However, valuations were rich at 44 times FY27, Bloomberg data showed. The December Quarter (Q3) is closely watched for signs of how the GST is the consumption of the form of the company’s strongest three-month period. With expectations already high, any festive manure can quickly temper the sentiment. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #rental Growth #Phoenix Mills #Retail #Markets Premium Read Next Story