According to Pornchalit Ploykrachang, Deputy Managing Director, Head of Real Estate & Infrastructure Investment, BBL Asset Management Company Limited (Bualuang Fund), the new wave of COVID-19 has also affected the forecast cashflow in the fourth quarter of fiscal year ending March 2021 and the 2021/2022 fiscal year performance. In addition, the decrease in the remaining period of its rights in net revenues under the concession agreement led BTSGIF to report its asset value as of 31 December 2020 at Baht 50,310 million, a downward adjustment of Baht 2,900 million from the previous valuation; and a net asset value (NAV) of Baht 8.8598 per unit.
For the fiscal year ending March 2021, BTSGIF will assign professionals to conduct an asset appraisal and review the forecast performance for the fiscal year 2022/2023 onward to be in line with the current situation.
"Once the new wave of the pandemic subsides, especially after the vaccines have been distributed to the wider public, the number of passengers in BTS system will gradually increase since commuters still have to rely on public transportation that facilitates connections between inner and outer Metropolitan area, with growing area coverage," Pornchalit said.
"Another important factor that will boost BTSGIF's income and its term period is further investment in the BTS extension line, in which BTSGIF has a right to acquire in the future at an appropriate time. This will further sustain BTSGIF's potential and performance."
Pornchalit added: "Bualuang Fund believes that, in the long term, allocation of funds to invest in alternative assets such as infrastructure funds can provide satisfactory returns. For BTSGIF, the current unit price is considerably under the NAV, which is an interesting level to invest in."
It should be noted that value of the current infrastructure asset invested by BTSGIF shall decrease according to the remaining period of its rights in net revenues under the concession agreement, which will expire in 2029.
Investors must understand product features, conditions of return and the risks before investing.
Past performance is not a guarantee of future results.
Source: Bualuang Fund