Shopping mall operators’ revenue may rise 7-9% this fiscal: Report

According to CRISIL, shopping mall operators are expecting to earn 7-9% higher revenue during the current fiscal year, which would be driven by strong retail consumption and improved rentals in their properties. Approximately 125% of pre-pandemic or FY20 revenue would be represented by that.

With a combined debt of more over US$ 976.5 million (Rs. 8,000 crore), CRISIL Ratings has analysed 28 malls with a total leasable area of about 18 million square feet distributed across 17 cities. According to lease agreements, mall operators typically receive a minimum of 85% of their income from guaranteed rentals, the remaining 15% is based on the tenants' revenue growth.

DLF, Brigade Enterprises, Macrotech Developers (Lodha Group), Nexus Select Trust, Phoenix Mills, Lulu Group, Pacific India, Unity Group, and Ambience Group are operating Grade A shopping malls across major cities.

In FY23, the average per square foot leasing rate increased 12–14% as the effect of COVID-19 subsided and occupancy rose.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.