Phoenix Mills Ltd Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Puneet Gulati - HSBC - Analyst : Yeah, thank you so much, and congrats on recent performance. My first question is on the multiple interventions that you're doing on your mall portfolio. How long should we think the impact to last for those? And what kind of CapEx will that entail? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 01, 2025 / 10:30AM, PHOE.NS - Q4 2025 Phoenix Mills Ltd Earnings Call

Question: Puneet Gulati - HSBC - Analyst : Yes. So yes, correct. So some spaces have gone, for example, in High Street Phoenix, Bangalore also, you alluded some stabilization. Pune as well some, I think, change in occupancy is what you indicated. So how long will that [strategic] exercise take before we start seeing again decent growth there?

Question: Puneet Gulati - HSBC - Analyst : Okay.

Question: Puneet Gulati - HSBC - Analyst : So you said 100,000 square feet down and plus 450,000 square feet or is it 450,000 square feet in addition to the [1,000], which will come back?

Question: Puneet Gulati - HSBC - Analyst : Understood.

Question: Puneet Gulati - HSBC - Analyst : When does Rise 1 come with this 458,000 area, time line for that?

Question: Puneet Gulati - HSBC - Analyst : Okay. two years. Understood. Great. Secondly, also if you can comment on Citadel and Palladium Ahmedabad, which have done some bit of tenure and have they achieved peak there in terms of near-term trading density? Or is there a significant initiative being taken out to further push up the momentum?

Question: Puneet Gulati - HSBC - Analyst : Understood. And just last question, and then I'll come back in the queue. If you can also talk a bit more on the commercial office space leasing, should we expect material leasing to happen in FY26? Or does it look like more an FY27 pickup event?

Question: Puneet Gulati - HSBC - Analyst : Thank you so much and all the best. Thank you.

Question: Saksham Mongia - Dymon Asia Capital - Analyst : Yes. I have two questions. First is related to with the consumer demand moderation and rising competition in real estate. Are you seeing increased instances of rental negotiations or brand exits? How does this compare to the past cycles that you have seen? And what actions are you taking to protect trading density and rental yields going forward? Second, with the global supply chain disruptions and macro risk, how are you managing exposure across international brands and domestic brands? And which categories or tenants appear to be most vulnerable in the current environment? These two questions from my end.

Question: Saksham Mongia - Dymon Asia Capital - Analyst : And on the macro? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 01, 2025 / 10:30AM, PHOE.NS - Q4 2025 Phoenix Mills Ltd Earnings Call

Question: Varun Thakkar - FYERS Asset Management - Analyst : So I just wanted to better understand the leasing agreement structures you have in your retail portfolio. I mean, specifically how the revenue share component is structured and at what threshold it typically kicks in. So that will be my first question.

Question: Varun Thakkar - FYERS Asset Management - Analyst : All right. I just like had a follow-up. Like I mean, when does this typically kick in? Like is it when the total sales threshold is crossed or is like you have like escalated threshold? And like what proportion of your tenants are currently paying revenue over the minimum guarantee in your top-performing malls?

Question: Parikshit Kandpal - HDFC Securities Inst Research - Analyst : Yes. Congratulations on a decent quarter. My first question is on consumption. So now if I see a matured mall, so Phoenix Palladium, Mumbai, consumption is almost flat. Trading density is negative. Bengaluru, again, we are seeing mall consumption is again negative, minus 1% for the year. Pune, there has been some growth, about 7%. So the malls are not even delivering inflation. So what is happening in these malls? And what are we doing to improve the consumption here?

Question: Parikshit Kandpal - HDFC Securities Inst Research - Analyst : So the only question here is that the traditional consumption format somehow has slowed down and which is the reason you are revamping towards more new age consumption formats. But do you think you have enough to fill in because you'll have to keep reengineering this and then there will be a period of -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 01, 2025 / 10:30AM, PHOE.NS - Q4 2025 Phoenix Mills Ltd Earnings Call

Question: Parikshit Kandpal - HDFC Securities Inst Research - Analyst : Got it, Shishir. Okay. My second question is on -- as we are ramping up and renewing the format or the pattern of consumption towards new age, there are also increasing competition in the vicinity with at least two new malls, large malls coming in, Prestige and Oberoi. It will take three, four years for them to come. But so how do you read into the competition? And do you think that, that micro market is enough consumption pull that you continue to grow at a sustainable basis of high single digit?

Question: Parikshit Kandpal - HDFC Securities Inst Research - Analyst : Okay. And just lastly on the Thane asset, so what are the plans? I think you've put a slide out there, but when does the work start? And when do you expect the mall to become operational? And --

Question: Parikshit Kandpal - HDFC Securities Inst Research - Analyst : On the Thane, yes, Thane, so what do you want to do with in Thane and when do you really break the ground on that asset?

Question: Murtuza Arsiwalla - Kotak Securities Ltd. - Analyst : Yes. Just a question on the commercial piece. In the near term, you've got a lot of commercial real estate, which is getting its OC. You talked about the leasing pipeline, but is there any agreements which have been signed which could start contributing to rentals this year? Or a lot of that pipeline still needs to convert to formalized agreements. And so the rental contribution from the commercial piece would only start more FY27. Just a clarification on that.

Question: Murtuza Arsiwalla - Kotak Securities Ltd. - Analyst : Okay, okay. So it's going to be more towards the end of the fiscal in terms of the office spaces -- the incremental office spaces contributing to rentals and a full year benefit should be more FY27. Is that fair?

Question: Parvez Qazi - Nuvama Wealth Management Limited - Analyst : So two questions. First, would be great to get some more details on the additional FSI purchase that we have done in Lower Parel. And second, I mean, excluding this FSI purchase, if we total up all your other plans over the next five years, I mean, by FY30, what is the total CapEx which we'll need to develop all those assets?