With a muted residential pre-sales backdrop, ORL is utilizing surplus cash flows to build robust lease asset portfolio. Work has started on Oberoi Borivali/Worli mall and Worli Office/Commerz III. Whilst in initial stages of construction and leasing, the rental potential of the ORL portfolio is expected to increase from Rs 3.3bn to Rs 15-18bn over next 3yrs. This shall then become REIT able and unlock value for shareholders. Residential projects sales velocity has been muted except for Borivali project, which is seeing strong demand due to lack of large gated project in the micro market. Mulund is seeing strong over supply with stressed projects being taken over by credible real estate players like L&T/Prestige Estate. ORL is building out affordable luxury product in Thane which shall augur well for volumes recovery/pre-sales velocity. We maintain NEU. Key risks (1) Approvals delays; (2) Continuation of weak underlying demand and (3) Delays in pre-lease tie up of under construction lease portfolio. ORL reported Revenue miss of 5% while EBITDA/PAT beat came in at 3.7%/4.1%. Pre-sales remain sluggish despite new inventory being opened up. Lease assets are shaping up on ground, we incorporate Borivali mall in our valuation. We maintain NEU with SOTP-based TP of Rs 573/sh (vs. Rs 539/sh earlier). We have reduced our FY20/FY21E EPS estimates by 50.6%/18.6%.