FPT unveils its 1HFY2024 performance, generating total revenue of over THB 6,500 million

• Driven by ongoing expansion of factory-warehouse business and robust leasing of office-retail buildings
• Residential business is facing economic challenges with banks tightening lending, impacting transfer volumes.

BANGKOK, 8 MAY 2024

Frasers Property (Thailand) Public Company Limited, or “FPT,” Thailand's first integrated real estate leader, disclosed its first half of FY2024 performance (October 2023 – March 2024), reporting total revenue of THB 6,591 million and net profit of THB 487 million. For 2QFY2024 performance (January – March 2024), the company generated total revenue of THB 3,524 million and net profit of THB 165 million. Despite macroeconomic challenges, the residential business continues to progress as planned, with four new projects set to launch in the second half of the year, alongside an adjustment in strategic plans. The industrial and commercial portfolio showed continuous revenue growth with occupancy rates reaching 86% and 92%, respectively.

Mr. Thanapol Sirithanachai, Country Chief Executive Officer, Frasers Property (Thailand) Public Company Limited, stated, “The strength of our business as a comprehensive real estate platform enables FPT to achieve stable operating results, generating income from real estate sales and rental revenues, which continue to grow, particularly through our factory and warehouse businesses, grade A office buildings, retail spaces, and hotel. We are consistently upgrading our products and services to retain our existing customer base while also attracting new customer segments. In addition, we continue to adjust our operations in line with market conditions amidst economic headwinds.”

For the first six months of FY2024 (October 2023 – March 2024), the company reported revenue of THB 6,591 million. This figure included THB 4,102 million from real estate sales, a decrease of THB 881 million, or 17.7%, compared to the same period in the previous year. Rental and service income amounted to THB 1,506 million, an increase of THB 155 million, or 11.5%, compared to the same period in the previous year. Additional income of THB 983 million was reported from other sources, an increase of THB 187 million, or 23.5%, compared to the same period in the previous year. Net profit for this period amounted to THB 487 million.

For 2QFY2024, the residential business received positive feedback from customers, achieving presales totaling THB 6,000 million. Notably, this was through the launch of a successful new project, The Grand Chaengwattana-Muang Thong, valued at THB 2,100 million. However, the business faces challenges such as elevated levels of household debt, resulting in an increase in loan application rejections from banks, which impacted revenue, resulting in a total of THB 2,371 million. The company has adapted its operational strategy by releasing product stocks and implementing targeted marketing campaigns. Moreover, the company is preparing to launch four new projects valued at a total of THB 5,100 million. These projects will offer high quality home products under the Grand, Grandio, and Neo Home brands in Bangkok and other provinces, along with the low-rise condominium KLOS Ratchada 7.

The industrial and commercial businesses collectively amounted to THB 772 million. The factory and warehouse rental businesses continued to benefit from heightened investor interest and companies’ production bases moving and expanding their production bases from China. This in turn drove increased demand for industrial space, positively impacting the company's portfolio with a high occupancy rate of 86%. During the quarter, it successfully delivered approximately 40,000 sqm of both Built-to-Suit and Built-to-Function projects. Two additional projects totaling more than 86,000 sqm are under development in Thailand and Vietnam, and are scheduled for completion in the second half of the year. Meanwhile, preparations are underway to expand additional investments in Indonesia, which has rental occupancy of nearly 100%.

FPT’s office portfolio maintained an impressive occupancy rate of 92%, with increased income from a growth in contractual agreements. The company consistently upgrades its buildings to enhance facilities in line with lifestyle trends and to cater to a broader range of tenant needs. Its hotel business is experiencing a surge in demand as a result of Thailand’s visa-free travel agreement for Chinese tourists which has boosted tourism in the country.

The company has maintained its “A” level corporate credit rating from TRIS Rating with a “stable” outlook for the third consecutive year. This rating underscores confidence in the company's business operations and stability, reinforcing its position as a trusted entity in the real estate sector in Thailand.

Comparison of financial results for a 6-month period (October – March)

Financial performance for the second fiscal quarter (January – March 2024)