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ICICI Securities: Prestige Estates Projects - All Eyes On Annuity Assets 

ICICI Securities: Prestige Estates Projects - All Eyes On Annuity Assets

Prestige Estate RMV Stage 2, Sanjay Nagar, Bangalore Project (image: Company website)
Prestige Estate RMV Stage 2, Sanjay Nagar, Bangalore Project (image: Company website)

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ICICI Securities Report

Owing to Covid-19 impact, Prestige Estates Projects Ltd. Q1 FY21 operations saw significant impact as mall shutdowns, delay in residential launches and drop in hotel occupancies impacted cash flows.

However, the office segment remained resilient with 99% rental collections for the quarter.

We remain bullish on the company’s long-term prospects and believe that Prestige Estates can clock rental income of over Rs 9 billion in FY22E (estimated enterprise value of Rs 99 billion) which acts as a cushion to consolidated net debt levels of Rs 84 billion.

The company’s focus on affordable/mid income housing projects in South India and expected recovery in hotel business in FY22E will enable the company to get its growth story back on track.

Click on the attachment to read the full report:

ICICI Securities Prestige Estates Q1FY21 Result Update.pdf

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