Prestige Group targets ₹1,179.4 crore retail annuity by FY30

Prestige Estates Projects Limited (Prestige Group) projects ₹1,179.4 crore of Prestige-share retail annuity income from FY30, versus ₹369.8 crore in FY27, while its retail portfolio reported 99% occupancy and ₹1,458 crore of gross turnover in H1 FY27, up 20% year on year.

Why is Prestige Group retail occupancy at 99%?

Prestige Group reported 99% occupancy across its retail portfolio, alongside gross turnover (GTO) of ₹721 crore in Q2 FY27. GTO increased 10% year on year in the quarter, while the portfolio remained almost fully occupied. The operational update does not provide a prior-year occupancy figure or a rent-per-square-foot measure.

For H1 FY27, Prestige Group reported GTO of ₹1,458 crore, 20% higher year on year, and mall footfalls of 10.4 million. Q2 FY27 footfalls were 5.2 million, exactly half of the H1 count disclosed by the company. These operating indicators apply to existing malls, while the annuity projection also includes developments scheduled for future completion or launch.

Prestige Group describes its completed retail portfolio as 13 projects with 10 million square feet of developable area. It also lists six ongoing projects with 7 million square feet and seven upcoming projects with 6 million square feet. The 13 million square feet of ongoing and upcoming area is larger than the completed portfolio's 10 million square feet.

How fast does Prestige Group expect retail annuity to grow?

Prestige Group projects its share of retail annuity income to rise from ₹369.8 crore in FY27 to ₹1,179.4 crore in FY30, an increase of ₹809.6 crore. The presentation states a 47% compound annual growth rate for this projection and identifies ₹369.8 crore as FY27 exit rentals. These are projected annuity amounts, not reported rental income.

The planned increase is concentrated before FY30. Projected income increases by ₹153.1 crore between FY27 and FY28, by ₹339.7 crore between FY28 and FY29, and by ₹316.8 crore between FY29 and FY30. FY31 is shown at the same ₹1,179.4 crore as FY30, and Prestige Group labels FY30 onwards as the exit-rentals period.

The FY30 projection is about 3.2 times the FY27 amount. Prestige Group does not disclose projected annuity by mall, tenant, lease escalation or leasing status, so the presentation does not quantify each asset's contribution to the ₹809.6 crore increase.

Which projects support Prestige Group's FY30 retail income plan?

Prestige Group's six ongoing retail projects represent 5.48 million square feet on its share basis, with completion or launch dates ranging from FY27 to FY31. Forum North Bengaluru and Forum Walk, Mulund are listed for FY27, while Forum TPC Bengaluru is scheduled for FY28. Forum @ TPC Hyderabad, Forum @ TPC Indirapuram and Forum One OMR are listed for FY29, FY30 and FY31, respectively.

Forum One OMR was the only retail project for which Prestige Group reported construction commencement in Q2 FY27, at 1.39 million square feet. The ongoing-project list shows the Chennai development with 1.70 million square feet of developable area, an 85% economic interest and 1.44 million square feet as Prestige Group's share. The company reported no retail completions in H1 FY27.

The upcoming pipeline adds 4.16 million square feet on Prestige Group's share basis across seven projects. Six are listed for FY27: Forum Park Grove, Forum Mall @ Hennur, Forum @ South Goa, Galeria Centro @ Prestige Sea Scapes, Forum @ The Prestige Place in Hyderabad, and Forum @ Banjara Hills. The Mumbai Forum @ The Prestige Place is listed for FY28 with a 50% economic interest and 0.80 million square feet attributable to Prestige Group.

Economic interest changes the area attributable to Prestige Group across projects. Forum @ TPC Hyderabad has 1.71 million square feet of developable area but a 38% economic interest, resulting in a 0.65 million-square-foot Prestige Group share. By comparison, the two Bengaluru ongoing malls total 2.40 million square feet and each has 100% economic interest.

How much further retail capex does Prestige Group plan?

Prestige Group reports ₹4,466.5 crore of remaining retail cost of construction (COC) on its share basis across ongoing and upcoming projects. Of that amount, ₹1,717.6 crore relates to ongoing retail projects and ₹2,748.9 crore relates to upcoming projects. The upcoming allocation exceeds the ongoing allocation by ₹1,031.3 crore.

The ₹4,466.5 crore balance is about 88% of the ₹5,073.5 crore total retail COC on Prestige Group's share basis. The difference between total COC and balance COC is ₹607 crore. The presentation does not disclose the timing of this spending, its funding source or expected returns.

Upcoming retail has ₹2,748.9 crore still to spend against total Prestige-share COC of ₹2,756.6 crore. Ongoing retail has ₹1,717.6 crore outstanding against ₹2,316.9 crore of total COC. Most remaining construction spending is therefore attached to projects classified as upcoming rather than the six projects classified as ongoing.

Conclusion

Prestige Group's presentation combines 99% retail occupancy and 20% year-on-year H1 FY27 GTO growth with a projected increase in Prestige-share annuity income from ₹369.8 crore in FY27 to ₹1,179.4 crore from FY30. The plan includes 9.64 million square feet of attributable area across ongoing and upcoming projects and ₹4,466.5 crore of remaining Prestige-share retail COC.

The disclosed milestones include FY27 completions or launches for Forum North Bengaluru, Forum Walk, Mulund and six upcoming malls, as well as progress at Forum One OMR after its Q2 FY27 construction commencement. The next reported annuity benchmarks are ₹522.9 crore in FY28 and ₹862.6 crore in FY29 before the ₹1,179.4 crore FY30 onwards exit-rentals level.