- At such a young age of five years, FTREIT or formerly known as TREIT has secured a strong foothold to deliver solid results and consistently generated high returns to its unitholders, thanks to outstanding performance of its REIT manager, FIRM.
- FTREIT is currently the largest industrial REIT in Thailand with total asset value of around 36 billion baht and high occupancy rate of more than 80%, reaffirming the performance efficiency of its REIT manager and the management team.
- Having affiliated itself to global property brand Frasers Property recently, FTREIT is now better equipped than ever to take up investment opportunities and boost its potentials for continuing and sustainable growth.
BANGKOK, 20 MARCH 2019
Among real estate investment trusts with excellent track record and solid performance to keep a watchful eye on, a name that stands out is Frasers Property Thailand Industrial Freehold & Leasehold REIT (FTREIT). Founded in 2014, FTREIT has been growing year on year ever since. What are the ingredients of this success? Managing director Peerapat Srisukont of Frasers Property Industrial REIT Management (Thailand) Company Limited (FIRM) as the manager of FTREIT is the best source to find out that answer.
Five Years of Growth by Leaps and Bounds
Now in its fifth year of operation, FTREIT, formerly known as TREIT, has consistently built a strong, high-quality portfolio of investment in income-producing factories and warehouses, including conversion of TFUND, TLOGIS and TGROWTH property funds into it to rise as the largest industrial REIT in Thailand. FTREIT currently boasts total asset value of 36 billion baht that comprises 547 units of factories and warehouses in key industrial and logistics locations of Thailand. At the beginning of this year, a major change took place to heighten international presence of this REIT and to officially affiliate it with global property brand Frasers Property: TREIT was renamed to Frasers Property Thailand Industrial Freehold & Leasehold REIT (FTREIT) whereas its manager, TMAN, was renamed to Frasers Property Industrial REIT Management (Thailand) Company Limited (FIRM). The renaming is deemed an important move to strengthen international recognition and credibility of this REIT as well as to enhance its appeals to local and international investors.
Key Roles and Responsibilities of FIRM
As a professional REIT manager, FIRM is helmed by managing director Peerapat Srisukont who has more than 20 years of industry experiences and insights into industrial and logistics properties, giving the company unmatched expertise in investment portfolio management for a highly successful REIT. Over the years, FIRM has taken key responsibilities to deliver successful management of FTREIT’s investment assets, explore investment opportunities to optimize the portfolio both in terms of asset quality and quantity, increase asset values across the portfolio, ensure efficient capital management, and bring about high returns to the unitholders. FIRM’s management efficiency is reflected in FTREIT’s Q1/FY2019 performance that highlights 677 million baht in total income and 422 million baht in net investment income. Besides, FTREIT has grown by very large degrees overall and continues to enjoy increased occupancy rate, excellent operating results and the ability to yield good returns to its unitholders consistently. By and large, FIRM is truly instrumental in the success of FTREIT.
Management Strategy for the Largest Industrial REIT in Thailand
Key strategic areas that keeps FTREIT progressing at its leading pace are:
- Investment Growth – FTREIT selectively invests in quality choice of income-producing assets. In particular, they are high-quality factories and warehouses located in strategic locations for industrial and logistics operations in Thailand, including those owned by its major sponsor, Frasers Property Thailand, as well as non-Fraser Property assets.
- Capital Management – Optimising capital structure to obtain appropriate cost of funds.
- Organic Growth – To achieve this, efforts are given to maximising the occupancy and lease renewal rates as well as quality upgrading to increase overall values and rate of return from the assets.
The Way Forward for FTREIT After Affiliation with Frasers Property
With strong performance delivered by FIRM as the REIT manager, FTREIT has been growing robustly year on year. Looking ahead, FTREIT will continue to increase its management efficiency and boost its operational capabilities through collaborations and expertise sharing within Frasers Property’s network. At the same time, FIRM’s strengths will be leveraged to unleash the growth potentials of FTREIT, including maximisation of the occupancy rate, continuation of quality investments in income-producing factories and warehouses, and delivering consistent returns to the unitholders.
