BANGKOK, 2 FEBRUARY 2024
Frasers Property (Thailand) Public Company Limited, or “FPT”, Thailand’s first integrated real estate platform, today announced its 1QFY2024 financial results, generating THB 3,066 million which saw higher year-on-year profit of THB 322 million in 1QFY2024 compared to 1QFY2023. Steady rental and service income from its industrial and commercial businesses contributed to its resilient financial performance while the residential business has faced economic headwinds, notably high household debt.
Mr. Thanapol Sirithanachai, Country CEO of Frasers Property (Thailand) Public Company Limited, said: “Frasers Property Thailand has sustained its stable financial performance for 1QFY2024 (October – December 2023) despite macro uncertainty and pressure. Secured by a stable rental income stream, our integrated real estate business remains focused on effective financial management with a balanced asset portfolio generating sales and recurring rental incomes in a 40:60 ratio. To differentiate and grow in the Thai market, we will tap on the Frasers Property Group’s trusted reputation and its deep multinational real estate expertise to develop into a ‘Real Estate as a Service’ brand that improves quality of life for both businesses and people.”
The company’s financial performance was backed by its industrial and commercial portfolio that generated THB 734 million in rental revenue, a 10.7% increase compared to the same quarter last year. FPT’s industrial business saw sustained high demand for industrial properties, particularly factories. This has attracted an increase in enquiries and new lease signings for FPT, primarily in the electronics and automotive sectors from China, Hong Kong and Taiwan. Additionally, FPT’s industrial operations in Indonesia and Vietnam achieved positive rental reversions with an influx of new customers and long-term renewals from existing tenants. Overall, the portfolio’s average occupancy rate is now at a three-year high of 87%. FPT is ready to invest and expand its inventory of factories and warehouses to meet additional demand from existing and prospective tenants. The industrial business plans to launch a new Built-to-Function solution in the next quarter, complementing its current Ready-Built and Built-to-Suit offerings.
For its commercial portfolio, Grade A offices and retail spaces maintained rental occupancy rates of 92%. The newly launched PromptMove service – a fully-furnished office space with ready-to-move and ready-to-use design concepts, has enjoyed positive feedback from tenants. Mixed-use Silom Edge attracted more tenants, with an office rental occupancy rate of 91% and 96% occupancy rate from retail tenants. The hospitality business has also fully recovered with tourism’s resurgence. FPT Commercial real estate business has recently accredited by Charlton Media Group, a leading business publisher in Asia, with the Customer Experience of the Year Award from The Asian Experience Awards. This recognition underscores the company's commitment to delivering inspiring spaces that cater to the needs of customers and building users.
The residential segment generated THB 1,731 million in revenue, with the launch of the new THB 2,180 million Grandio Chaengwattana-Muang Thong project and the release of home stock to buyers. With the challenging macro-economic environment expected to persist and affect the local residential market, including high interest rate, purchasing power loss, and a high household debt contributing to financial institution rejection rates. The company has realigned its operational strategies to meet market needs. For the fiscal year’s remaining nine months (January - September 2024), plans are in place to launch six new projects, worth over THB 9,400 million, ranging from detached houses and townhomes to condominiums. Frasers Property Thailand currently has an active sales inventory of about THB 1,300 million that will continue to fuel further sales income.
1QFY2024 financial performance with Y-o-Y comparison:
| Quarterly Financial Performance: (October – December 2023) |
1Q FY2024 (THB million) |
1Q FY2023 (THB million) |
Changes (THB million) |
Y-o-Y Difference (%) |
|---|---|---|---|---|
| Net income | 3,066 | 3,706 | -640 | -17.3 |
| - Sale of real estate | 1,731 | 2,715 | -984 | -36.2 |
| - Rental and service fee | 734 | 663 | 71 | 10.7 |
| - Other income | 601 | 328 | 273 | 83.2 |
| Net profit | 322 | 317 | 5 | 1.6 |
