Prestige Group projects Rs 4,891.6 crore FY31 annuity income

Prestige Group projects Prestige-share commercial annuity income of Rs 4,891.6 crore in FY31, compared with FY27 exit rentals of Rs 884.8 crore, supported by 12 ongoing projects covering 20 million square feet and scheduled for completion through FY30. The presentation states a 53% compound annual growth rate for the FY27-to-FY31 projection.

What is Prestige's commercial annuity income forecast through FY31?

Prestige projects that its share of commercial annuity income will increase from Rs 884.8 crore in FY27 to Rs 4,891.6 crore in FY31. The company identifies these figures as exit rentals and forecasts Rs 2,270.9 crore for FY28, Rs 3,378.4 crore for FY29 and Rs 4,001.9 crore for FY30. FY means fiscal year.

Prestige states that the FY27-to-FY31 forecast represents a 53% compound annual growth rate, or CAGR. The projected income increase is Rs 4,006.8 crore over four fiscal years, although this is management's projection rather than reported rental income. The annual projected addition declines from Rs 1,386.1 crore between FY27 and FY28 to Rs 889.7 crore between FY30 and FY31.

The forecast is stated on a Prestige-share basis, meaning the attributable income is linked to the economic interest in each asset rather than the full project area. For example, Prestige 101, BKC (X) in Mumbai has 2.94 million square feet of developable area and 100% economic interest, while Prestige 101, BKC (Y) has 1.83 million square feet and 66% economic interest, resulting in 1.21 million square feet of Prestige share.

Which ongoing projects support Prestige's FY31 annuity projection?

Prestige's ongoing commercial portfolio comprises 12 projects covering 20 million square feet, with 14.84 million square feet attributable to Prestige based on the listed economic interests. Mumbai has the largest ongoing developable area at 9.05 million square feet and the largest Prestige-share area at 8.01 million square feet, compared with Bengaluru's 8.43 million square feet and 5.53 million square feet respectively.

The listed completion timetable spans FY27 to FY30. In Bengaluru, Prestige Waterfront, with 0.54 million square feet, and Prestige Tech Habitat, with 1.04 million square feet, are due in FY27. Mumbai's Prestige 101, BKC (X) and Prestige 101, BKC (Y), with a combined 4.77 million square feet, are scheduled for FY28 completion.

Prestige Century Landmark in Bengaluru, with 2.93 million square feet and a 55% economic interest, is scheduled for FY30. Chennai's Prestige One West and OMR Commercial, with 1.25 million square feet and 0.31 million square feet respectively, are also listed for FY30, extending the construction-completion sequence behind the income forecast.

Commercial construction starts totalled 4.95 million square feet in H1 FY27, the first half of FY27, while completions totalled 4.44 million square feet. The starts included Prestige Century Landmark's 2.93 million square feet in Bengaluru, while completed area included Prestige Tech Forest in Bengaluru at 3.64 million square feet and Prestige Trade Center in NCR at 0.80 million square feet.

How does Prestige's upcoming commercial pipeline add capacity?

Prestige lists 12 upcoming commercial projects with 19 million square feet of developable area and 15.80 million square feet of Prestige share. Bengaluru accounts for 6.52 million square feet of listed upcoming area, Hyderabad for 4.70 million square feet and Mumbai for 5.66 million square feet, but the attributable areas vary with economic interests ranging from 45% to 100%.

Commercial – Raidurg in Hyderabad is the largest individual upcoming project, at 4.70 million square feet with 100% economic interest, and is planned for an FY28 launch. In Bengaluru, Prestige Lake Shore Drive Phase II and Phase III are each listed for FY27 launch; together they account for 4.84 million square feet of developable area and 4.60 million square feet of Prestige share.

Mumbai's three upcoming assets total 5.66 million square feet but have 3.09 million square feet of Prestige share. Prestige Quantum has 1.63 million square feet and 50% economic interest, Prestige Chambers 51 has 2.72 million square feet and 60% interest, and The Prestige Place – Commercial has 1.31 million square feet and 50% interest.

Prestige says projects added in the second quarter are at a planning stage and their areas may vary with design until approvals are received. The pipeline includes Shipco, a 2.04 million-square-foot warehousing project in Kolar with 70% economic interest and an FY27 planned launch, so the eventual area remains subject to that qualification.

How much commercial capex does Prestige still need to spend?

Prestige reports Rs 12,929.5 crore of balance capital expenditure, or capex, attributable to its share of ongoing and upcoming commercial projects. Ongoing commercial projects account for Rs 6,931.4 crore, while upcoming commercial projects account for Rs 5,998.1 crore of the balance.

The spending position differs between the two portfolio groups. Ongoing assets have Rs 7,291.1 crore of balance capex against Rs 11,456.8 crore of total capex, whereas upcoming assets have Rs 8,000.4 crore remaining against Rs 8,099.0 crore of total capex, consistent with their planned launch status.

The annuity projection therefore depends on scheduled delivery and the remaining expenditure. Prestige discloses completion dates through FY30 and launches in FY27 and FY28, but does not provide tenant commitments, leasing rates or an annual spending timetable for the Rs 12,929.5 crore of remaining Prestige-share capex.

Conclusion

Prestige's FY31 projection combines a substantial increase in Prestige-share commercial annuity income with a portfolio being completed and launched across several cities. Mumbai provides the largest ongoing Prestige-share area at 8.01 million square feet, while Bengaluru contributes 5.53 million square feet and includes both FY27 completions and FY30 delivery projects.

The next disclosed milestones are FY27 launches in the upcoming portfolio and FY27 commercial completions in Bengaluru. Progress against the Rs 12,929.5 crore remaining Prestige-share capex, the FY28 Mumbai completions and approvals for planning-stage projects are the stated execution points to watch next.