Central Pattana Public Company Limited (CPN) has reported its Q2 2022 financial results, showing a continued recovery with total revenue of 9.151 billion baht, an increase of 13% from the previous quarter, and a net profit of 2.753 billion baht, up 18% from the previous quarter. This growth is attributed to the recovery signals in retail, with traffic returning to over 80% and a steady increase in tourist numbers following the reopening of the country. The company is advancing its “Retail-Led Mixed-Use Development” strategy, investing in four core businesses: shopping centers, residential properties, office buildings, and hotels, with shopping centers as the main focus. This initiative aims to grow over 180 projects nationwide across more than 30 provinces within five years, emphasizing the creation of a Sustainable Ecosystem in collaboration with all stakeholders for mutual sustainable growth, reinforcing the vision of Imagining Better Futures For All.

Ms. Naparat Sriwanwittaya, CEO and Deputy Managing Director for Finance, Accounting, and Risk Management at Central Pattana, stated, “The company’s performance this quarter shows a continuous recovery, particularly in the hotel, food court, and residential sectors, driven by positive economic factors as the country recovers. People are returning to normal life following the easing of COVID-19 measures, the reopening to welcome tourists, and government tourism stimulus measures, resulting in a nearly threefold increase in international tourist numbers from 500,000 in Q1 to 1.5 million in Q2. Shopping center traffic has also returned to over 80% of normal levels. Additionally, the company continues to control costs and expenses to enhance profitability.”

In Q2, the company successfully opened Central Chanthaburi, the largest and best mixed-use project in the eastern region, in May 2022, which received an unexpectedly positive response with traffic reaching 40,000 people per day during the launch. Furthermore, the company is moving forward with a five-year investment plan worth 120 billion baht under the “Retail-Led Mixed-Use Development” strategy, focusing on shopping centers and enhancing them with residential projects, office buildings, and hotels. The goal is to develop over 180 projects across more than 30 provinces nationwide within five years (2022-2026) as follows:

50 Shopping Centers: Expanding shopping centers in every district, city, and location nationwide, with the announcement of the opening of Central Westville, valued at over 6.2 billion baht, targeting the Ratchaphruek area directly connecting to Bangkok CBD on a 40-rai plot with a GFA of 93,000 square meters, aiming to elevate the western side of Bangkok to an Upper-Class Lifestyle area, set to open in Q4 2023.

17 Community Malls: Expanding into high-potential locations and CBD areas more comprehensively, with projects set to open in Q4 2022, including “Marché Thonglor” (formerly Market Place Thonglor), catering to the best neighborhood in Thonglor.

70 Residential Projects: Highlighting the strength of Central Homes, projects adjacent to Central shopping centers and within leading mixed-use developments, partnering with various projects within the Central Group to become a top developer of quality residential projects, covering both horizontal and vertical developments. Recently launched projects include the condominium PHYLL Phuket, now open for booking, and six new projects in 2022, including four condominiums ESCENT adjacent to Central Surat Thani, and three projects next to Robinson Lifestyle in Suphanburi, Chachoengsao, and Trang, as well as two single-detached house projects: Ninya Ratchaphruek and Niratti Chiang Mai.

37 Hotels with 4,000 Rooms: Covering all segments under three brands: Centara (Upscale), Centara One (lifestyle midscale), and Go! Hotel (Premium Budget), with the first hotel Centara Korat set to open in September 2022, reinforcing the success of ‘Central Korat’, the most complete mixed-use project in the Northeast.

13 Office Buildings: Developing the Most Preferred Workplace for both tenants and employees, with a key focus this year on revamping centralwOrld Offices and future projects including Central Park Office within the Dusit Central Park project, transforming it into a Professional Hub of Global Standards and projects under GLAND in the high-potential Rama 9 CBD area.

Additionally, Central Pattana has invested in a joint venture with JWD Store It! at a 30% stake, with an investment of 93.86 million baht to expand into the rental storage service business, catering to the increasing demand from retailers, tenants, and general customers. Currently, there are six branches providing a total of 13,000 square meters of service. This investment aligns with the company’s strategy to expand into other industries that strengthen its core business by partnering with experts and leaders in those industries. Furthermore, it continues to pursue its goal of becoming a Net Zero Company by 2050, raising funds through the issuance of green bonds for environmental conservation projects, the first of its kind in the Thai real estate and retail sector, amounting to 1 billion baht with a three-year maturity, reinforcing the vision of Imagining Better Futures for All, driving towards the future by creating and developing quality spaces while caring for people, communities, and the environment for sustainable growth together.”

Currently, Central Pattana manages 38 shopping centers with a total net leasable area of 2.3 million square meters (16 projects in Bangkok and its vicinity, 21 projects in provinces, and 1 project in Malaysia, along with one large shopping center under a joint venture and 17 community malls). Additionally, it manages 33 food courts, 10 office buildings, 2 hotels, and 22 residential projects, including condominiums under the brands ESCENT, ESCENT VILLE, ESCENT PARK VILLE, PHYLL, and BELLE GRAND RAMA 9, as well as horizontal projects under the brands ESCENT TOWN (townhouses), ESCENT AVENUE (home offices), Ninya Kalpapruek (duplex houses), and the luxury single-detached house project Niyam Borommaratchachonnani, along with various horizontal projects under the brand “Nirati” in Chiang Rai, Bangna, and Don Mueang.

Moreover, there is the project “Dusit Central Park,” a big project developed in collaboration with Dusit Thani Public Company Limited, which will gradually open for service from 2023 to 2024 onwards.

For the business direction over the next five years (2022-2026), the company will continue to invest in developing new projects, both announced and unannounced, including mixed-use developments, residential projects, and plans to upgrade existing assets to increase value, while efficiently managing expenses and reducing costs to maintain financial liquidity in preparation for uncertain situations. The company will also continue to explore investment opportunities in other business forms, acquisitions, and investments in foreign countries in the Southeast Asian region, such as Malaysia and Vietnam, as well as studying opportunities to invest in new businesses with high growth potential to expand new revenue channels and align with future growth targets sustainably.