M.K. Real Estate Development Public Company Limited (MK) has successfully navigated the crisis, reporting that by the end of the first quarter of 2020, its rental and service business generated revenue of 143.99 million baht, representing a growth of 23%. In the property development sector for sale, total revenue reached 496.93 million baht, with pre-approved credit applications and backlog sales exceeding year-end 2019 sales by over 40%.

Mr. Vorasit Pokachaiyapat, Chief Executive Officer of M.K. Real Estate Development Public Company Limited (MK), revealed the company's performance for the first quarter of 2020 (ending March 31, 2020), stating that the company and its subsidiaries achieved total revenue from sales and services of 640.92 million baht. This includes revenue from property development for sale at 496.93 million baht, with pre-approved credit applications and backlog sales exceeding year-end 2019 figures by over 40%. This growth is attributed to the company's strategic adjustments in response to the current situation. The rental and service business also saw revenue growth, reaching 143.99 million baht, a 23% increase compared to the same period last year.

“The ongoing slowdown in the Thai economy since 2019, combined with the COVID-19 pandemic, has significantly impacted certain consumer groups, leading to delays in purchasing decisions and reduced purchasing power. Consequently, in the first quarter of 2020, the company recorded property sales revenue of 496.93 million baht. When comparing this quarter's revenue from horizontal property sales to the average quarterly revenue after the housing credit control measures were implemented last year, there was a decrease of approximately 18%,” he stated.

Mr. Vorasit further noted that despite the crisis, the company was able to generate recurring income from rental and service businesses amounting to 143.99 million baht, a 23% increase from the same period last year. The primary revenue source came from the Bangkok Free Trade Zone project, managed by Prospek Development Co., Ltd., which generated 92.86 million baht, an increase of 29.31 million baht from the same period last year, representing a growth of 46.12%.



From the overall performance of M.K. Real Estate Development Public Company Limited, it is evident that the rental and service business continues to grow steadily, significantly contributing to the group's gross profit. This aligns with the company's plan to restructure its revenue to mitigate business risks and ensure consistent long-term income. The gross profit margin from the rental and service business compared to total gross profit, excluding land sales, increased to 34% from 19.5% in this quarter.

“It is clear that the group's five-year business plan, which focuses on creating a stable revenue balance, has effectively mitigated the impacts of the economic slowdown and the COVID-19 pandemic. The group has also managed to control costs and expenses at appropriate levels while continuing to execute its business plan. Moving forward, the company plans to expand its business, with plans to launch two more horizontal projects and a wellness center project scheduled to open in late 2020. Additionally, the company plans to establish a real estate investment trust in the second half of the year to align with its five-year revenue structure plan, aiming for a profit ratio of 50/50 by 2024,” concluded Mr. Vorasit.