Shopping malls’ revenues set to recover this fiscal

In Rebound Mode

- Crisil analysed 28 malls, which have leasable space of 18 mn sft across 17 cities

- Malls’ total debt is over Rs8,000 cr

- Mall operators generate 85% of their income from rentals

- And the rest is linked to the revenue performance of tenants

New Delhi: Shopping mall operators are expected to earn 7-9 per cent higher revenue during this fiscal, driven by strong retail consumption and improved rentals in their properties, according to Crisil.

“Buoyant retail sales and improved rental yields are expected to lift the revenue of mall operators by 7-9 per cent this fiscal. That would be tantamount to around 125 per cent of pre-pandemic or fiscal 2020, revenue,” it said in a statement.

The rating agency said that the growth in revenue will be on a high base of FY23. During the last fiscal, Crisil noted that “return to social normalcy after mobility curbs were lifted led to substantial growth in footfalls and a robust 60 per cent rise in revenue to around 116 per cent of the pre-pandemic level.