Frasers Property Thailand announces strong half-year financial results with revenue of THB 7,788 million

Friday 05 August 2022 10:06
Frasers Property Thailand Public Company Limited ("FPT"), Thailand's leading integrated real estate platform, announced the performance of the first half of the year (January-June 2022) at THB 7,788 million. This strong performance underscores its proactive business strategy implemented across its residential, industrial and commercial businesses. The recovery of the local economy has also enabled the company to grow its operating performance in all dimensions.
Frasers Property Thailand announces strong half-year financial results with revenue of THB 7,788 million

Mr. Thanapol Sirithanachai, Country CEO of Frasers Property (Thailand) Public Company Limited, said: "We are pleased with Frasers Property Thailand's six-month financial performance (January-June 2022). We have been driving efforts to adapt to the economic situation by designing and rolling out strategic plans focusing on market penetration and new customer acquisition. We will continue to push for innovative products and services to keep ahead of market trends and cater to the ever-changing needs of customers so that we become the brand of choice."

In the second calendar quarter of 2022, the Company issued debentures worth THB 3,000 million, which attracted the overwhelming subscription by high-net-worth individuals and cooperatives, reflecting the market's confidence in the potential of FPT's integrated real estate platform and steady performance. Proceeds obtained would be used for the repayment of existing loans, business expansion, and also as working capital of 2022.

The company successfully generated a total revenue, during the past three months (April-June 2022), in the amount of THB 4,374 million, representing a net profit of THB 680 million and a total revenue for the 6-month period (January-June 2022) of THB 7,788 million, with a net profit of THB 991 million.

It realized a higher proportion of gross margin at 6% as compared to the previous year, attributed by developing more single detached home projects to expand the segment of customers with high purchasing power. During the first half of the year, Frasers Property Home gradually launched, out of 18 projects, a total of 6 projects at prices ranging between THB 2-35 million, the development value worth entirely THB 20,000 million. For the second half of 2022, the Company plans to launch a total of 12 projects, consisting of single detached houses, semi-detached houses, townhomes, and upcountry projects.

Meanwhile, its industrial and commercial businesses contribute a steady stream of income for the company, recording a revenue of THB 597 million in the first half of the year (January-June 2022).

The factory and warehouse business has an occupancy rate of 85.4 percent which benefits from stronger short-term demand for warehouse due to a slowdown in exports, a trend that is expected to last till the end of 2022.

In the past quarter, Frasers Property Industrial increased its stake to become a major shareholder in modern warehouse projects in Indonesia, which are located in three cities including Karawang, Makassar, and Banjarmasin. As a result, its overseas portfolio has expanded by more than 150,000 square meters, and its overall industrial real estate portfolio under management has grown to 3.25 million square meters.

In addition, assets were sold to Real Estate Investment Trust and Industrial Leasehold Real Estate FTREIT, landing the latest quarter with an extra income of THB 622 million.

Its commercial real estate business is able to maintain a high occupancy rate of over 90%. Its buildings focus on new Core & Flex offerings to cater to tenants' requirements for standard and flexible office space. Its mixed-use development Silom Age has achieved progress as targeted and will be launched for the first time in September 2022. In the same period, the Queen Sirikit National Convention Center project will be delivered to N.C.C. Management and Development Company Limited upon completion of its construction. Meanwhile, its integrated development Samyan Mitrtown is likely to benefit from the reopening of the country.

Source: Frasers Property (Thailand)