M.K. Real Estate Development Public Company Limited (MK) reported a revenue of 786.26 million baht for Q3 2021, reflecting a growth rate of 6.12%. The revenue comes from residential real estate sales amounting to 664 million baht and recurring income from rental and services totaling 122.27 million baht.

The factory and warehouse rental business continues to grow, with an occupancy rate of over 90% in the Bangkok Free Trade Zone (BFTZ). Overall, for the first nine months, the group reported total revenue of 1,893.58 million baht. The company is committed to diversifying its business risks in line with its strategic income restructuring plan (Sustainability Development Roadmap), focusing on new opportunities to expand its business.

Mr. Vorasit Pokachaiyapat, Chief Executive Officer of M.K. Real Estate Development Public Company Limited (MK), disclosed the company's performance for Q3 2021 (ending September 30, 2021), indicating a net loss of 62.31 million baht compared to a net profit of 125.04 million baht in the same quarter last year, primarily due to the ongoing impact of the COVID-19 pandemic. However, revenue from sales and services increased by 45.38 million baht, or 6.12%, compared to the same period last year, which had revenue of 740.88 million baht. The breakdown includes 664 million baht from residential real estate sales, up by 52.52 million baht or 8.59%, and 122.27 million baht from rental and services, down by 7.14 million baht or 5.52% compared to Q3 of the previous year.

Due to Prospect Development Co., Ltd. selling some assets to transfer into the Prospect Logistics and Industrial Property Trust, the factory and warehouse rental business in the Bangkok Free Trade Zone, managed by Prospect Development Co., Ltd., continues to show positive growth, achieving an occupancy rate of over 90%. For the first nine months, the group reported total revenue of 1,893.58 million baht.

“In Q3, the group continued to be affected by the COVID-19 pandemic. Nevertheless, we are executing our planned operations and focusing on internal management, particularly cost control and reducing expenses to maintain financial liquidity. Effective management has resulted in a reduction of operating costs by 21.84 million baht compared to the same quarter last year,” he stated.

Overall, the group's revenue shows an increase in sales and services of 45.38 million baht, representing a growth rate of 6.12%. The revenue from real estate development stands at 664 million baht, up by 52.51 million baht or 8.59%. Rental and service income is at 88.28 million baht, down by 1.71 million baht or 1.89%. The golf course and property management business reported 11.71 million baht, down by 16.31 million baht or 58.21%, due to the closure of service venues to prevent the spread of COVID-19, which halted golf course operations from July 23 to August 31, 2021, for 40 days. Currently, operations have resumed under government measures and have received a positive response from golfers.

As for the healthcare service business (RAKxa), it has also been impacted by the situation, as it falls under the affected category. To align with the goal of becoming a World Class medical wellness destination, RAKxa has adjusted its strategy to align with the government's reopening policy, collaborating with foreign government sectors and increasing contracts with international sales representatives, while ramping up marketing efforts to reach customers continuously, offering special package deals, utilizing digital media, enhancing employee training, and controlling expenses.

“For the final quarter of this year, we expect the overall business to brighten up, driven by the government's announcement to ease lockdown measures and open the country, which is expected to restore confidence among investors and foreign tourists. This is a positive factor for the group, as we have businesses that can support the country's growth, including the factory and warehouse rental business and healthcare services. Additionally, the Bank of Thailand has temporarily relaxed loan-to-value (LTV) measures until the end of 2022, which will help stimulate consumer purchasing power. To prepare for the easing measures in the housing sales sector, we are fully ready to meet customer demands, especially through online channels, including product offerings, promotions, loan consultation services, and after-sales services, while ensuring safe project visit measures,” he added.

“To align with the strategic income restructuring plan (Sustainability Development Roadmap) and to diversify operational risks, we remain committed to seeking new business opportunities to build on our existing businesses, particularly in rental and service income, including factory and warehouse rentals and health services, all of which are currently under feasibility studies, with clearer prospects expected in 2022,” Mr. Vorasit concluded.