Oberoi Realty Q3 Review - Pokhran Launch Deferred Again; Annuity To Grow 3x In Next Two Years: Yes Securities

Yes Securities Report

Oberoi Realty Ltd. reported the pre-sales of 0.26 million square feet translating to Rs 7,869 million of which 78% was contributed by the Forestville, Sky City and Enigma for Q3 FY24.

Management is confident to monetise 360 West projects in the next two years. Pokhran, Thane project has been deferred to September 2024. Augmentation of the Commerz-III and Borivali mall is on track and will be given to fit-outs by Mar-24.

Leasing of the Commerz-III to happen at a good pace. Post stabilisation of Commerz-III, Borivali Mall and Hotel the annuity income should surpass the annual run rate of Rs 17 billion.

For Q3 FY24, Oberoi Mall/ Commerz/ Commerz-II reported revenue of Rs 434 million/114 million/275 million with operating margin of 95%/93%/92% respectively with steady occupancy and rental rate.

The Westin achieved Rs 492 million revenue for Q3 FY24 with the Ebitda margin of 42% and revenue per available room of Rs11,112 backed by strong average room rate of Rs 13,629/night/room.

Oberoi Realty launched the Tower C in Elysian and secured gross booking of Rs 8.82 billion on Jan-24 with 20% higher realisation.

Management showed intent to prudently utilise cash generated from projects on business development and acquire projects of larger scale.

As all the residential projects are CF positive and 0.15 times gearing, we believe with sustenance of strong demand for larger houses, new launches to do well on the back of quality product and delivery track record.

We maintain a premium of 25% on the current portfolio and arrived at SoTP based one-year forward net asset value of Rs 1676/share with ‘Buy’ rating.

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