- Solid business outlook driven by strong backlog of build-to-suit industrial development, demand for ready-built factories and warehouses, higher lease income from commercial properties and gains from the sales of industrial land and planned divestment of industrial property assets to FTREIT.
- Demand for prime industrial assets remains strong with robust assets under management (AUM) occupancy rate of 82%.
- FPT targets not less than 3 billion baht of industrial property assets to FTREIT.
- FPT’s 1Q/2020 revenue was 4,609 million baht while net profit was 308 million baht, driven by solid growth in recurring income from its industrial and commercial property businesses.
BANGKOK, 12 FEBRUARY 2020
Frasers Property (Thailand) Public Company Limited (“FPT”), a leading provider of integrated real estate platform, is upbeat about its business outlook for its Industrial and commercial property businesses.
Mr. Sopon Racharaksa, President of FPT, revealed, “Our industrial property portfolio maintains good growth momentum with AUM occupancy rate of 82%. Healthy demand for build-to-suit development driven by the expansion of existing tenants and new demand from fast moving consumer goods (FMCG), e-commerce and automotive industries will drive our business in the near future. We are confident of delivering our built-to-suit target of 150,0000 sq.m. this year.”
FPT will also benefit from sales of industrial land in the Thailand’s Eastern Economic Corridor area to Midea Group for development of Midea’s largest intelligent technology for home appliances manufacturing hub outside China. The adjacent landbank that is still owned by FPT will be further developed to capture demand from Midea’s eco-system. FPT also targets to complete its asset recycling exercise and sell at least 3 billion baht of assets to FTREIT later this year.
Industrial property business achieved strong performance in the first quarter of fiscal year 2020 (“1Q/2020”) with +4.60% Y-o-Y increase in rental and related services revenue to 442 million baht. The occupancy rate of factories reached a five-year record high of 75%, up from 72% last year. The warehouse and logistics portfolio also achieved 86% occupancy rate, an increase from 81% over the same period last year.
Residential property business reported softer performance with 1Q/2020 revenue of 3,546 million baht, down 5.6% Y-o-Y. The impact was from the LTV measure which recently has been further relaxed. As of 31 December 2019, Golden Land Property Development Public Company Limited achieved a total pre-sales value of 7.1 billion baht from 58 active projects, with backlog awaiting to be transferred of 3,654 million baht.
Commercial property business saw a healthy revenue increase by +5.34% Y-o-Y from higher rental income of FYI Center & Samyan Mitrtown buildings.
On a consolidated basis, FPT’s revenue for the first quarter of FY2020 ended 31 December 2019 was 4,609 million baht with recorded net profit of 308 million baht, lowered from the same period last year due mainly from absence of gain from sales of assets to FTREIT which was recorded last year. Normalised 1Q/2020 total revenue would have been reduced by a marginal of -3.6% Y-o-Y from the slowdown in the residential market.
“We are excited about FPT’s solid start to the fiscal year 2020, with key segmental results in line with expectations. Going forward, FPT’s ongoing execution of various value accretive projects, as well as potential overseas expansion and business synergy with Golden Land will ensure sustainable growth to our shareholders." Mr. Sopon said.
