Phoenix Mills Ltd. · NSE:PHOENIXLTD
Phoenix Mills — The Phoenix Mills — Q1 FY24 Earnings Presentation
66 slides from Phoenix Mills's earnings presentation, Aug 8, 2023
Slide 1: Cover letter to stock exchanges
Corp. Office: Shree Laxmi Woolen Mills Estate, 2nd Floor, R.R. Hosiery, Off Dr. E. Moses Rd. Mahalaxmi, Mumbai - 400 011 Tel: (022) 3001 6600 Fax : (022) 3001 6601 CIN No. : L17100MH1905PLC000200 August 08, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange
Slide 2: The Phoenix Mills Ltd. Investor Presentation Q1 FY24
Phoenix Palladium Mumbai Photo shot at location The Phoenix Mills Ltd. Investor Presentation Q1 FY24 1
Slide 3: Business Update, Business Performance, Financial Results, Annexure
Photo shot at location Business Update Business Performance Financial Results Annexure Phoenix MarketCity Kurla 2
Slide 4: Retail consumption in Q1 FY24 grew by 18% over Q1 FY23
Retail consumption in Q1 FY24 grew by 18% over Q1 FY23 Q1 FY24 Consumption (Rs. mn) Growth 9% 11% 7% 13% 6% 13% NA NA -9% 14% over Q1 FY23 5,463 4,746 3,995 3,634 2,685 2,403 1,045 751 508 508 Phoenix PMC Bangalore PMC Pune PMC & PMC Mumbai Phoenix Phoenix Citadel Palladium PU Lucknow PU Bareilly Pa
Slide 5: Retail consumption in July 2023 grew by 15% over July 2022
Retail consumption in July 2023 grew by 15% over July 2022 July 2023 Consumption (Rs. mn) Growth 4% 7% 3% 5% 6% 17% NA NA -4% 19% over July 2022 1,910 1,680 1,480 1,290 980 890 410 340 160 170 Phoenix PMC Bangalore PMC Pune PMC & PMC Mumbai Phoenix Phoenix Citadel Palladium PU Lucknow PU Bareilly Pa
Slide 6: Palladium Ahmedabad – The Luxury mall of Gujarat
Phoenix Palladium Ahmedabad – Commenced operations on 26th February 2023 The Luxury mall of Gujarat Indicative Render 5
Slide 7: Phoenix Palladium Ahmedabad
Phoenix Palladium Ahmedabad Photo shot at location 6
Slide 8: Phoenix Palladium Ahmedabad
Phoenix Palladium Ahmedabad Photo shot at location 7
Slide 9: Palladium Ahmedabad – Performance Update
Phoenix Palladium Ahmedabad – Performance Update Photo shot at location Ramp up in Trading Occupancy 68% 60% 43% 32% Feb-23* Mar-23 Jun-23 Jul-23 *Operations commenced on 26-Feb-23 8
Slide 10: Citadel Indore – Commenced Operations from 1st December 2022
Phoenix Citadel Indore – Commenced Operations from 1st December 2022 Actual Photo 9
Slide 11: Citadel Indore – Performance Update
Phoenix Citadel Indore – Performance Update Photo shot at location Ramp up in Trading Occupancy 87% 86% 70% 42% Dec-22* Mar-23 Jun-23 Jul-23 Photo shot at location Actualcommenced *Operations Photo on 01-Dec-22 10
Slide 12: Citadel Indore - Sustainability updates
Phoenix Citadel Indore - Sustainability updates Photo shot at location ✓ Received the USGBCTM LEED Gold Certification ✓ First retail asset in India to achieve the IFC Edge Advanced Certification ✓ Efficiency details as per IFC Edge Advanced Certificate: ✓ 44% Energy saving ✓ 61% Water saving ✓ 52% l
Slide 13: Mall of the Millennium Wakad, Pune
Phoenix Mall of the Millennium Wakad, Pune The new city center at West Pune Indicative Render 12
Slide 14: Mall of the Millennium – Opening soon Wakad, Pune
Phoenix Mall of the Millennium – Opening soon Wakad, Pune Photo shot at location • Retail GLA: ~1.10 msft • Office GLA: ~1.20 msft • Occupation Certificate received for retail mall portion • Over 190 stores / ~0.70 msft currently under fit-out 13
Slide 15: Mall of the Millennium – Interior Shots
Phoenix Mall of the Millennium – Interior Shots Wakad, Pune Indicative Render Photo shot at location 14
Slide 16: Millennium Towers – Commercial Offices integrated with the mall
Millennium Towers – Commercial Offices integrated with the mall Wakad, Pune Photo shot at location ✓ Office GLA: ~1.20 msft ✓ Expected year of operation: FY25 ✓ Construction commenced for 2 of 4 office towers ✓ Slab shuttering and reinforcement work in progress for Tower 1 A and Tower 1 B ✓ Slab com
Slide 17: Mall of Asia Hebbal, Bangalore
Phoenix Mall of Asia Hebbal, Bangalore Indicative Render The Largest Retail led Mixed-use development in Bangalore 16
Slide 18: Phoenix Mall of Asia Hebbal, Bangalore
Phoenix Mall of Asia Hebbal, Bangalore Photo shot at location • Retail GLA: ~1.20 msft • Occupation certificate received for Retail portion (mall and multiplex) • Over 214 stores / ~0.70 msft currently under fit-out 17
Slide 19: Mall of Asia – Captivating interiors taking shape
Phoenix Mall of Asia – Captivating interiors taking shape Hebbal, Bangalore Photo shot at location Indicative Render Photo shot at location 18
Slide 20: Asia Towers – Commercial Offices on top of the mall
Phoenix Asia Towers – Commercial Offices on top of the mall Hebbal, Bangalore Photo shot at location Photo shot at location • Office GLA: • Phase 1: ~0.80 msft • Phase 2: ~0.40 msft ✓ First phase of offices to be operational in FY24 ✓ Lobby and common area finishing, and façade work underway 19
Slide 21: ISML Offices – Offices integrated with Phoenix MarketCity Bangalore
ISML Offices – Offices integrated with Phoenix MarketCity Bangalore (Whitefield) Retail expansion GLA- ~0.20 msft and ~17 screen multiplex Proposed Office Towers – GLA - ~1.10 msft Proposed Grand Hyatt Hotel Upto 400 Keys Existing Mall GLA - ~1 msft Indicative Render 20
Slide 22: Palladium Offices – Offices on top of our malls, Chennai
Palladium Offices – Offices on top of our malls Phoenix MarketCity and Palladium Chennai Photo shot at location ✓Office GLA: ~0.42 msft ✓Construction commenced ✓Completion targeted in FY25 21
Slide 23: Project Rise at Lower Parel, Mumbai
Project Rise at Lower Parel, Mumbai – office-led mixed use development - the Jewel in the Phoenix crown – approvals secured and construction commenced Office GLA: ~1.10 msft Retail GLA: ~0.20 msft Indicative Render Indicative Render Concept Architect – Callison 22
Slide 24: Alipore, Kolkata: East India's retail destination
Alipore, Kolkata: East India’s retail destination - Excavation commenced Indicative Render Concept Architect – Callison 23
Slide 25: Update on our Retail Development in Surat
Update on our Retail Development in Surat Surat – our 2nd retail destination in Gujarat Acquisition details Project Status ✓ In final stages of approval – building plans ✓ Land parcel of ~ 7 acres submitted for approval ✓ Land cost of ~Rs. 501 cr (incl stamp duty). ✓ Consultants for various work str
Slide 26: Update on other projects: Residential & Warehousing
Update on other projects: Residential & Warehousing Residential Warehousing HIDCO, Alipore Sohna , NCR ✓ Won auction for 5.5 acres prime land parcel ✓ Acquired 33 acres land parcel ✓ Land cost of ~Rs. 414 cr ✓ Land cost of ~Rs. 54 cr ✓ Saleable area of ~1 msft ✓ GLA of ~1 msft Project Status: Projec
Slide 27: Business Performance - Retail
Photo shot at location Business Update Business Performance - Retail Financial Results Annexure Phoenix Marketcity Pune 26
Slide 28: Q1 FY24 Retail Rental Income grew by 17% over Q1 FY23
Q1 FY24 Retail Rental Income grew by 17% over Q1 FY23 Q1 FY24 Q1 FY23 % growth over Name of Asset Retail Rental Income Retail Rental Income Q1 FY23 (Rs. mn) (Rs. mn) Phoenix Palladium Mumbai 962 945 2% Phoenix MarketCity Bangalore 501 460 9% Phoenix MarketCity Pune 516 523 -1% Phoenix MarketCity and
Slide 29: Q1 FY24 Retail EBITDA grew by 19% over Q1 FY23
Q1 FY24 Retail EBITDA grew by 19% over Q1 FY23 Q1 FY24 Q1 FY23 % growth over Name of Asset Retail EBITDA Retail EBITDA Q1 FY23 (Rs. mn) (Rs. mn) Phoenix Palladium Mumbai 1,017 933 9% Phoenix MarketCity Bangalore 518 468 11% Phoenix MarketCity Pune 546 512 7% Phoenix MarketCity and Palladium Chennai
Slide 30: Ramp-up in leased and trading occupancy across major malls
Ramp-up in leased and trading occupancy across major malls Leased Occupancy Trading Occupancy GLA Mar-23 Jun-23 Mar-23 Jun-23 Phoenix Palladium Mumbai ~0.92 msf* 99% 99% 91% 95% Phoenix MarketCity Bangalore ~1.00 msf 98% 98% 94% 98% Phoenix MarketCity Pune ~1.20 msf 97% 97% 90% 92% Phoenix MarketCit
Slide 31: Business Performance – Commercial
Indicative Render Business Update Business Performance – Commercial Financial Results Annexure Asia Towers Bangalore 30
Slide 32: Office Portfolio seeing improving leasing traction
Office Portfolio seeing improving leasing traction Total Area Area Sold Net Leasable Area Leased Gross Rent * Net Rent * Project Name Location (msft) (msft) Area (msft) (msft) (psfpm) (psfpm) Operational Office Portfolio Art Guild House Mumbai 0.80 0.17 0.63 0.52 110 90 Phoenix Paragon Plaza Mumbai
Slide 33: Q1 FY24 Commercial Offices Income stood at Rs. 449 mn, up 11%
Q1 FY24 Commercial Offices Income stood at Rs. 449 mn, up 11% over Q1 FY23 EBITDA as Total Income (Rs. mn) EBITDA (Rs. mn) % of Total Income Operational Portfolio Q1 FY24 Q1 FY23 FY23 Q1 FY24 Q1 FY23 FY23 Q1 FY24 Q1 FY23 FY23 Art Guild House 207 187 769 144 126 513 70% 67% 67% Phoenix Paragon Plaza
Slide 34: Business Performance – Hospitality
Photo shot at location Business Update Business Performance – Hospitality Financial Results Annexure By the Mekong, The St. Regis, Mumbai 33
Slide 35: The St. Regis, Mumbai - Significant improvement in ARR
The St. Regis, Mumbai - Significant improvement in ARR Occupancy (%) ARR (Rs.) RevPar (Rs.) 16,504 13,494 85% 82% 38% 33% 11,997 10,174 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 34
Slide 36: The St. Regis, Mumbai – Trends in July 2023
The St. Regis, Mumbai – Trends in July 2023 Occupancy (%) ARR (Rs.) RevPar (Rs.) 14,191 81% 11,010 78% 29% 23% 11,016 8,957 Jul-22 Jul-23 Jul-22 Jul-23 Jul-22 Jul-23 35
Slide 37: The St. Regis, Mumbai
The St. Regis, Mumbai Photo shot at location (Rs mn) Q1 FY24 Q1 FY23 % growth FY23 Revenue from Rooms 468 362 29% 1,761 Revenue from F&B and 527 396 33% 1,859 Banqueting Other Operating 119 73 64% 422 Income Total Income 1,115 830 34% 4,042 Operating EBITDA 477 318 50% 1,804 EBITDA margin (%) 43% 38
Slide 38: Courtyard by Marriott Agra - Significant improvement in RevPAR
Courtyard by Marriott Agra - Significant improvement in RevPAR Occupancy (%) ARR (Rs.) RevPar (Rs.) 72% 4,408 3,160 18% 36% 62% 3,733 2,327 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 37
Slide 39: Courtyard by Marriott Agra – Trends in July 2023
Courtyard by Marriott Agra – Trends in July 2023 Occupancy (%) ARR (Rs.) RevPar (Rs.) 72% 4,207 2,632 60% 4% 15% 2,528 3,673 Jul-22 Jul-23 Jul-22 Jul-23 Jul-22 Jul-23 38
Slide 40: Courtyard by Marriott Agra
Courtyard by Marriott Agra Photo shot at location (Rs. mn) Q1 FY24 Q1 FY23 % growth FY23 Revenue from Rooms 54 40 36% 239 Revenue from F&B and 51 39 31% 197 Banqueting Other Operating 4 3 33% 29 Income Total Income 109 81 33% 465 Occupancy (%) 72% 62% NA 72% ARR (Rs.) 4,408 3,733 18% 4,795 RevPAR(Rs
Slide 41: Business Performance – Residential
Indicative Render Business Update Business Performance – Residential Financial Results Annexure One Bangalore West 40
Slide 42: Residential Portfolio – Steady traction in demand for ready units
Residential Portfolio – Steady traction in demand for ready units ➢ Sales trajectory has seen good improvement backed by strong demand and faster conversions. ➢ Sales of Rs. 1,351 mn in Q1 FY24 ➢ Strong sales momentum continues, with gross residential sales of ~Rs. 941 mn in July 2023, taking the YT
Slide 43: Financial Results
Photo shot at location Business Update Business Performance Financial Results Annexure Phoenix MarketCity Pune 42
Slide 44: Standalone P&L – Q1 FY24 vs. Q1 FY23
Standalone P&L – Q1 FY24 vs. Q1 FY23 (Rs. mn) Q1 FY24 Q1 FY23 YoY% FY23 Income from operations 1,179 1,122 5% 4,765 Q1 FY24 Revenue Operating EBITDA 822 736 12% 3,203 Rs. 1,179 mn 5% EBITDA Margin (%) 70% 66% 4 pps 67% Other income 59 4021 579% 639 Profit before tax & exceptional 638 921 -31% 2,878
Slide 45: Consolidated P&L – Q1 FY24 vs. Q1 FY23
Consolidated P&L – Q1 FY24 vs. Q1 FY23 (Rs. mn) Q1 FY24 Q1 FY23 YoY% FY23 Income from operations 8,106 5,744 41% 26,383 Operating EBITDA 4,923 3,229 52% 15,189 EBITDA Margin (%) 61% 56% 5 pps 58% Q1 FY24 Revenue Profit before tax and exceptional 3,627 2,223 63% 10,662 Rs. 8,106 mn 41% items Exceptio
Slide 46: PML Consolidated Cashflow
PML Consolidated Cashflow Particulars For the quarter (Rs mn) ended 30-Jun-23 Cash and Cash equivalents at the beginning of the period 2,646 Cash Flow from Operating Activities Profit before Tax 3,627 Less: Adjustments (Depreciation, Interest Income, Interest Expenses etc) 1,335 Operating cash flow
Slide 47: PML Consolidated Cashflow
PML Consolidated Cashflow Particulars For the quarter (Rs mn) ended 30-Jun-23 Cash Flow from Financing Activities Net Proceeds from issue of Equity shares at Share Premium (Net of Issue Expenses) 10 Loans availed / (Loans or OCD Repaid) 151 Proceeds from Minorities - Interest paid -944 Dividend paid
Slide 48: Strong operating free cash flow in Q1 FY24
Strong operating free cash flow in Q1 FY24 Particulars For the quarter For the quarter (Rs mn) ended 30-Jun-23 ended 31-Mar-23 Net cash from operating activities 5,447 6,180 Less: Interest paid -944 -1,259 Operating free cash flow 4,503 4,921 Operating free cash flow (Rs mn) 4,921 4,503 3,177 3,394
Slide 49: Debt Profile as on 30th June 2023
Debt Profile as on 30th June 2023 ➢ Average cost of debt in June 2023 at 8.87% Effective cost of debt (%) ➢ Lowest rate on borrowing stands at 8.50% 9.19% ➢ 97% of debt is on the operational portfolio 8.87% 8.74% Status Asset Class Amount (Rs. Mn) 8.17% 7.89% Spread: Retail 32,273 Spread: 7.30% 237
Slide 50: Decline in gross debt levels by Rs. 5,231 mn since March 2020
Decline in gross debt levels by Rs. 5,231 mn since March 2020 Debt on Operational Portfolio (Rs. Mn) 44,574 41,774 40,189 40,022 39,420 37,234 Mar-20 Mar-21 Mar-22 Sep-22 Mar-23 Jun-23 Debt on Under Construction Portfolio (Rs. Mn) 5,542 Debt of Phoenix Citadel and Phoenix 5,312 Palladium Ahmedabad m
Slide 51: Debt and Cash Position as on 30th June 2023
Debt and Cash Position as on 30th June 2023 Group Level PML Share Amount Rs. Mn Liquidity (Bank balance + 18,731 14,270 Investments + DSRA)*^ Gross Debt 40,500 30,560 Net Debt 21,769 16,290 Q1 FY24 EBITDA^ 4,994 4,048 *Does not include amount available in overdraft accounts ^ Includes Starboard whic
Slide 52: Upgrades/New Credit Rating in the last 12 months
Upgrades/New Credit Rating in the last 12 months Rated Amount Rating as on Sr. No. Company Rating Agency Current Rating Remarks (Rs. mn) 30-June-22 India Ratings 7,500 A+/ Stable AA-/ Stable Upgraded by 1 notch with stable outlook 1 The Phoenix Mills Limited CRISIL 4,000 A+/ Stable AA-/ Stable Upgra
Slide 53: Annexure
Photo shot at location Business Update Business Performance Financial Results Annexure Phoenix Palassio Lucknow 52
Slide 54: Phoenix Palladium Mumbai
Phoenix Palladium Mumbai (Rs. mn) Q1 FY24 Q1 FY23 % growth FY23 Rental 962 945 2% 3,818 CAM & Others 191 169 13% 740 Total Income 1,152 1,113 4% 4,558 Asset EBITDA 1,017 933 9% 3,935 Asset EBIDTA Margin as % 106% 99% NA 103% of Rental PML Standalone EBITDA 822 736 12% 3,203 Mall GLA (msft)* 0.87 0.9
Slide 55: Phoenix MarketCity Bangalore
Phoenix MarketCity Bangalore (Rs. mn) Q1 FY24 Q1 FY23 % growth FY23 Rental 501 460 9% 1,912 CAM & Others 172 159 8% 652 Total Income 673 618 9% 2,563 Asset EBITDA 518 468 11% 1,888 Asset EBIDTA Margin as % 104% 102% NA 99% of Rental Mall Rental Rate (Rs. pspm) 168 162 4% 164 Mall Consumption (Rs. mn
Slide 56: Phoenix MarketCity Pune
Phoenix MarketCity Pune (Rs. mn) Q1 FY24 Q1 FY23 % growth FY23 Rental 516 523 -1% 1,970 CAM & Others 200 192 4% 758 Total Income 715 715 0% 2,728 Asset EBITDA 546 512 7% 1,991 Asset EBIDTA Margin as % 106% 98% NA 101% of Rental Mall Rental Rate (Rs. pspm) 156 153 2% 154 Mall Consumption (Rs. mn) 3,9
Slide 57: Phoenix MarketCity & Palladium Chennai
Phoenix MarketCity & Palladium Chennai (Rs. mn) Q1 FY24 Q1 FY23 % growth FY23 Rental 516 494 4% 1,930 CAM & Others 239 204 17% 849 Total Income 755 698 8% 2,779 Asset EBITDA 568 532 7% 2,055 Asset EBIDTA Margin as % 110% 108% NA 106% of Rental Mall Rental Rate (Rs. pspm) 158 148 7% 156 Mall Consumpt
Slide 58: Phoenix MarketCity Mumbai
Phoenix MarketCity Mumbai (Rs. mn) Q1 FY24 Q1 FY23 % growth FY23 Rental 399 374 7% 1,470 CAM & Others 178 172 4% 677 Total Income 577 546 6% 2,147 Asset EBITDA 389 358 9% 1,438 Asset EBIDTA Margin as % 98% 96% NA 98% of Rental Mall Rental Rate (Rs. pspm) 119 112 6% 113 Mall Consumption (Rs. mn) 2,68
Slide 59: Phoenix United Lucknow
Phoenix United Lucknow (Rs. mn) Q1 FY24 Q1 FY23 % growth FY23 Rental 87 90 -3% 364 CAM & Others 43 41 3% 167 Total Income 130 131 -1% 531 Asset EBITDA 79 82 -3% 342 Asset EBIDTA Margin as % 91% 91% NA 94% of Rental Mall Rental Rate (Rs. pspm) 87 88 -1% 86 Mall Consumption (Rs. mn) 508 559 -9% 2,161
Slide 60: Phoenix United Bareilly
Phoenix United Bareilly (Rs. mn) Q1 FY24 Q1 FY23 % growth FY23 Rental 59 58 2% 241 CAM & Others 32 29 10% 124 Total Income 91 87 5% 366 Asset EBITDA 60 58 3% 252 Asset EBIDTA Margin as % 101% 100% NA 104% of Rental Mall Rental Rate (Rs. pspm) 66 67 -1% 66 Mall Consumption (Rs. mn) 508 447 14% 1,942
Slide 61: Phoenix Palassio Lucknow
Phoenix Palassio Lucknow (Rs. mn) Q1 FY24 Q1 FY23 % growth FY23 Rental 309 279 11% 1,200 CAM & Others 123 130 -5% 500 Total Income 433 410 6% 1,701 Asset EBITDA 320 306 5% 1,216 Asset EBIDTA Margin as % 103% 110% NA 101% of Rental Mall Rental Rate (Rs. pspm) 119 114 4% 119 Mall Consumption (Rs. mn)
Slide 62: Phoenix Citadel Indore
Phoenix Citadel Indore 01-Dec-22 to (Rs. mn) Q1 FY24 31-Mar-23 Rental 228 191 CAM & Others 113 109 Total Income 341 300 Asset EBITDA 236 173 Asset EBIDTA Margin as % of Rental 104% 91% Mall Rental Rate (Rs. pspm) 79 79 Mall Consumption (Rs. mn) 1,045 793 Mall Trading Density 621 570 (Rs. pspm) Mall
Slide 63: Phoenix Palladium Ahmedabad
Phoenix Palladium Ahmedabad 26-Feb-23 to (Rs. mn) Q1 FY24 31-Mar-23 Rental 190 29 CAM & Others 95 26 Total Income 285 55 Asset EBITDA 137 16 Asset EBIDTA Margin as % of Rental 72% 56% Mall Rental Rate (Rs. pspm) 145 92 Mall Consumption (Rs. mn) 751 227 Mall Trading Density 945 1,007** (Rs. pspm) Mal
Slide 64: Gross Debt across Subsidiaries as on 30th June 2023
Gross Debt across Subsidiaries as on 30th June 2023 PML Q4 FY23 Q1 FY24 Potfolio Status Asset Type SPV Asset Name Ownership (Rs. Mn) (Rs. Mn) (%) The Phoenix Mills Limited Phoenix Palladium, Mumbai 100.0% 5,234 4,973 (Standalone) Classic Mall Development Phoenix MarketCity, Chennai 100.0% 3,985 3,82
Slide 65: The Phoenix Mills Limited: Follow us for updates
The Phoenix Mills Limited: Follow us for updates Asset Instagram handle Link Retail Phoenix Palladium Mumbai phoenixpalladium https://www.instagram.com/phoenixpalladium/ PMC Kurla marketcitykurla https://www.instagram.com/marketcitykurla/ Phoenix Palassio Lucknow phoenixpalassio https://www.instagra
Slide 66: Thank you
Thank you Varun Parwal Bhavesh Gada Email: varun.p@phoenixmills.com Email: bhavesh.gada@phoenixmills.com Madhurima Kane Email: madhurima.kane@phoenixmills.com Website: https://www.thephoenixmills.com/investors 65