ORI Ranks Top 5 in Thai Real Estate, Sets New Record with 28.2% Net Profit Margin

Highest Ever Following JV Projects with Outstanding Transfer Volumes

"Origin Property" ranks in the TOP 5 real estate companies, showcasing a profit of 717 million baht in Q3/2020, growing both QoQ and YoY, supporting a new record net profit margin of 28.2% after the transfer volume from JV projects reached a new high, particularly with the "Knightsbridge Prime On Nut" project generating 1 billion baht. Positive signals are expected in Q4/2020 from the economic situation and government measures, with 8 new completed projects ready for transfer valued at over 10 billion baht, driving significant year-end transfer activities. The company plans to launch 6 new projects worth over 8.9 billion baht.

Mr. Pirapong Jarunek, CEO of Origin Property Public Company Limited (ORI), a comprehensive real estate developer, revealed that in Q3/2020, the company achieved total transfer volumes exceeding 3.896 billion baht, divided into Non-JV projects at 2.207 billion baht and JV projects at 1.689 billion baht, resulting in a net profit of 717 million baht, an increase both QoQ and YoY, with a net profit margin of 28.2%, the highest the company has ever achieved, maintaining its position among the top 5 profitable real estate businesses in Thailand.

“This year, our profits have consistently ranked in the top 5 every quarter, as it is the first year we have begun to reap the benefits from our JV projects. All completed JV projects this year have shown outstanding and continuous transfer activities, especially in Q3/2020, where our JV project transfers reached a new high of 1.689 billion baht. A significant contributor was the newly completed JV condominium project, the "Knightsbridge Prime On Nut," which had transfers amounting to 1 billion baht, allowing us to share profits from the JV projects excellently, resulting in a net profit margin growth to 28.2%, the highest the company has ever achieved,” Mr. Pirapong stated.

Mr. Pirapong further stated that for Q4/2020, the company expects to maintain strong performance levels due to positive external factors affecting the real estate business, including the improving overall economic outlook following the recent U.S. elections. Additionally, the government policy extending the reduction of transfer fees until the end of this year is likely to encourage consumers to decide on property transfers within this quarter.

Internally, the company has successfully developed new projects on schedule, with an additional 8 projects ready for transfer, valued at approximately 10.54 billion baht. Among these is 1 JV project, the "Knightsbridge Space Ratchayothin," valued at 2.7 billion baht, which has over 93% backlog. Meanwhile, both Non-JV and JV projects completed earlier will continue to transfer ownership. The company anticipates that Q4/2020 will be the quarter with the most outstanding transfer activities and profits of the year.

In addition, the company will launch approximately 6 new projects valued at around 8.95 billion baht, including 2 new brands: a luxury single-house brand "Belgravia" and a high-end condominium brand "Soho Bangkok," to expand the company's business segments further into the market.

“Everyone knows that this year's market may not be very bright due to the impact of COVID-19. Fortunately, we have built a solid foundation over the years. Although we are just now discussing the Open Platform this year, we have actually been open to joint ventures and partnerships since three years ago, resulting in continuous transfer volumes and profit sharing from JV projects. Our team excels in market seeking, identifying real demand in areas and segments that are Blue Ocean. We are proactive in adapting, changing, and developing quality projects with new Reaching Solutions and Living Solutions, continuously diversifying our portfolio into new segments. These foundations have allowed our sales and transfer volumes to continue without interruption, even in a slowing market. Recently, our sales for the first 10 months have already surpassed our target of 21.5 billion baht for this year,” Mr. Pirapong concluded.

ORI has a diverse business structure, including: 1. Residential Development Business - developing condominiums and housing projects, with 82 projects such as PARK ORIGIN, The Origin, KnightsBridge, Notting Hill, Kensington, and BRITANIA, totaling over 126 billion baht. 2. Recurring Income Business - such as hotels, serviced apartments, and retail. 3. Service Business - including property management, real estate brokerage, consulting services, and a vision to continuously expand into new business types to become a comprehensive real estate operator.