With a balance launch pipeline of ~5.1mn sqft in residential segment and ~2.9mn sqft leasing in commercial segment the company remains well on track to achieve the pre-sales guidance of ~4mn sqft in residential and ~3mn in pre-leases for FY20E ex 0.7mn sqft of hard option. The quarter witnessed improvement in collections (+27% QoQ). Mid-income and affordable segments are expected to drive residential sales with ~86% of BEL new launches in the affordable housing segment. Whilst pending pre-tax cash flows of Rs 22.9bn from real estate projects should cover the capex requirement of Rs 9.3bn primarily towards commercial projects, timing mismatch could result in further increase in D/E ratio. We maintain NEUTRAL. Key monitorable: (1) Leasing velocity in Bengaluru SEZ project and (2) Timeline for conclusion of hospitality business divestment. We maintain NEU on BEL with increased SOTP-based TP of Rs 252/sh (vs. Rs 228/sh earlier). BEL maintained strong residential pre-sales momentum and completely leased out Chennai WTC. We await pick in Bengaluru Tech Garden leasing (30% leasing till date).