Asset World Corporation or AWC, a leading real estate developer in Thailand focused on comprehensive lifestyle solutions, has announced its 2019 financial results, reporting a net profit of 1,040 million baht, a remarkable increase of 109%. In the fourth quarter of 2019, the net profit reached 482 million baht, growing by 140% compared to the same period last year. The company is moving forward into 2020 with five main strategies aimed at creating a better future for all stakeholders while enhancing the country's economy holistically.

Navalapa Traisorat, CEO and Managing Director of Asset World Corporation Public Company Limited (AWC), stated, "The past year, 2019, was significant for us. In addition to the success of our listing on the stock exchange, all business segments showed strong and satisfactory growth rates. We achieved a net profit of 1,040 million baht, up 109%, with operational profit from our assets growing by 8.4%. This operational profit is divided into 45% from hospitality, 22% from retail, and 33% from office businesses. Revenue from our operational asset portfolio grew by 3.4%, driven by our 2019 strategy focused on enhancing the business positions of existing assets, improving operational efficiency, and adjusting our investment portfolio strategy to meet targeted returns."

In 2019, the hospitality segment reported a 1.3% increase in revenue from operational assets, with core revenue from hotels and MICE (Meetings, Incentives, Conferences, and Exhibitions) rising by 6.8%. The Bangkok Marriott Marquis Queen's Park, which is in its ramp-up phase, saw revenue growth of 13.9% and operational profit growth of 26%. The company also reported an average revenue per available room (RevPAR) exceeding the overall hotel industry, with a Revenue Generation Index (RGI Index) of 108.

The retail and commercial real estate segment experienced a 7.7% increase in revenue from operational assets, attributed to the successful launch of two new projects: Gateway at Bang Sue, which saw revenue growth of 1,037% and operational profit increase of 225%, and Lasalle Avenue, which achieved revenue growth of 175% and operational profit growth of 9,245%. The office leasing business also adapted its leasing strategies to meet changing customer and business demands, resulting in continuous revenue growth of 6% (excluding the performance of assets sold during 2018). The company's focus on cost management and bulk purchasing led to an increase in the operational profit margin from 48% to 51%.

Meanwhile, the company's total assets grew by 17.3%, and total liabilities decreased by 50.7% due to the use of funds from a capital increase to manage liquidity and repay loans, as well as prepare for investments in Group 3 assets (the company acquired Group 3 assets on January 1, 2020, with a total investment value of 26,229.5 million baht), resulting in a strong financial structure with a debt-to-equity ratio reduced to 0.4 times.

BUILDING A BETTER FUTURE 2020

With a commitment to sustainable growth, Asset World Corporation has set strategic goals, including generating attractive returns on equity, strengthening and continuously growing sustainably, and becoming a respected and trusted organization. The company will implement five main strategies for 2020:

• Continuous Growth-Led Strategy: Focus on new projects that align with the company's growth plans, with over 30 billion baht allocated for developing more than 12 hotel and lifestyle tourism projects, increasing hotel room capacity to 8,506 and retail space to 415,481 square meters by 2024.

• Targeting Middle to High Income Customer Segment: The company has a clear target customer base, including middle to high-income customers and MICE tourists, who exhibit high growth rates and profit margins.

• Strengthening Partnerships with Global Leaders: Collaborating with expert partners to share expertise and operational standards at an international level, while accessing new customer segments through a global distribution network and loyalty programs with over 300 million members.

• Market Leadership and New Benchmarking: Creating large-scale projects with unique attractions to enhance competitiveness and boost the tourism industry, establishing new benchmarks for destinations and promoting the MICE industry in Thailand, while attracting international tourists through a strong global network.

• Sustainable Business Development: Focusing on social and environmental considerations and stakeholder value, creating business sustainability through various initiatives, including achieving sustainability certifications, minimizing environmental impact, and responding to the company's "Sustainability Management" policy through the Asset World Foundation for Charity and The Gallery social enterprise, all aimed at creating a better future for the company, investors, and stakeholders while enhancing the Thai economy and society holistically.

The five main strategies are supported by AWC's strong infrastructure and business model, including expertise in investment and project development, asset management capabilities to maximize investment returns, and a diverse and balanced investment portfolio to manage risks from market fluctuations, aiming to become a progressive and sustainably growing real estate business.

Green Loan Support from the International Finance Corporation (IFC) for Thailand's First Real Estate Group

After signing an Engagement Letter for green loan allocation for environmentally friendly projects, Asset World Corporation is prepared by signing a collaboration agreement for the Excellence in Design for Greater Efficiencies (EDGE) certification from the International Finance Corporation of the World Bank Group. AWC and IFC are in discussions for green financing for various environmentally friendly projects, making AWC the first real estate group in Thailand to receive such green loan support, with plans to develop projects that meet standards for energy and water savings of at least 20% compared to conventional projects, along with other environmental conservation and energy-saving initiatives, which are among AWC's main goals for a better future and sustainable value.

Response to the COVID-19 Pandemic

In light of the COVID-19 pandemic's economic impact on various industries, particularly global tourism, including in Thailand, Asset World Corporation is closely monitoring the situation and has implemented continuous measures to ensure hygiene and safety within its projects. The company has collaborated with leading hotel partners to establish policies waiving cancellation fees for hotel stays and meetings, considering the appropriateness of travel times and originating countries. In the retail real estate business, the company will provide rental discounts based on the impact of customer numbers and the economy for each project on a month-to-month basis, and will consider additional assistance as the situation evolves, standing firm to face all challenges together to overcome this difficult time.