Phoenix reported strong 3Q earnings, up 46% YoY, as its core mall portfolio continued to do well. Lease income grew 10% YoY, driving 14% YoY Ebitda growth. Its lease income performance appears sustainable given underlying consumption growth continues to match the lease income increase. For the next leg of growth Phoenix is looking to tie-up sites under its mall development platform by 1HFY19 and scale-up its office portfolio. We maintain our BUY rating with a revised target price of Rs 722 (previously (Rs 597). Phoenix reported its highest ever quarterly NP of R65.2 crore, up 46% YoY, (ahead of estimates) driven by good mall performance. Lease income at malls increased 10.0% YoY to R220 crore. Like-to-like total revenue was up 8% YoY to R470 crore. Ebitda was up 14% YoY to R240 crore with its margin expanding 266bps YoY to 51.6%. With capital costs flattening out for Phoenix (stake increases done, limited fresh capex) the impact on its bottom line is much higher than Ebitda. Average rentals across its five major mall properties were up 8%-17% YoY, driving overall lease income growth of 10% YoY. For 9MFY18, total mall rentals are up 11% YoY to Rs 640 crore and consumption across malls is up a matching 10% YoY to Rs 4,790 crore, highlighting the sustainability of Phoenix\u2019s rental increase. Phoenix\u2019s St. Regis, Mumbai hotel room rentals were up 15% YoY to 12.2k, driving a 15% growth in operating Ebitda at the hotel to Rs 28.7 crore. Residential pre- sales were still weak at Rs 33 crore for 3Q and R76 crore for 9MFY18. Management said end-3Q\/early-4Q saw a pick-up in sales. Phoenix is utilizing left-over development potential at project sites to build offices with Pune\u2019s 0.6m sf residental\/for-sale space converted to a for-lease office development.