Prospect REIT Management Co., Ltd., the manager of the Prospect Logistics and Industrial Real Estate Investment Trust, or “PROSPECT REIT”, announced that the board meeting of the trust manager has approved a dividend payout for the third quarter of 2022 at a rate of 0.2265 Baht per unit. The total revenue reached 111.39 million Baht, a slight increase of 0.27% from the previous quarter, while net profit was 70.13 million Baht, a slight decrease of 1.27% compared to the previous quarter due to increased building improvement expenses aimed at maintaining the quality of the assets. Overall, the warehouse and rental factory business in 2022 shows a positive growth trend, supporting the yield of PROSPECT REIT to remain around 8-9% this year.

At the same time, the demand for factory and warehouse space from the food business, E-Commerce, and logistics service providers has significantly expanded, bolstered by the electric vehicle (EV) industry, which is increasing its production base in Thailand. This is another key factor driving the future growth of PROSPECT REIT. The Bangkok Free Trade Zone (BFTZ) project, located on Bangna-Trad Road, Km. 23, is strategically positioned in Thailand's logistics sector and offers a variety of quality buildings, both ready-built and built-to-suit, all of which can be tailored to the needs of tenants, whether for factories or warehouses, thus meeting tenant demands comprehensively.

Ms. Aranong Chaitong, CEO of Prospect REIT Management Co., Ltd., as the trust manager, stated, “The performance of PROSPECT REIT in the first nine months of this year has followed the roadmap we set out, starting with the freehold investment in the X44 project on Bangna-Trad Road, Km. 18 from a developer other than the main sponsor for the first time, with a long-term lease agreement with a car paint business. Additionally, in the second half of the year, as the economy recovers, foreign investors are beginning to visit warehouse and factory spaces before deciding to lease, pushing the occupancy rate in the third quarter to a high level of 94.4%. We focus on the quality of our assets and providing comprehensive services (one-stop service). Our main tenants continue to renew their contracts at 100% in the third quarter, along with new tenants in growth sectors such as food and solar cell manufacturing, which adds diversity to our tenant base across industries, a key strength of PROSPECT REIT that helps mitigate tenant risk and ensures consistent and good returns for unit holders every quarter.”

PROSPECT REIT will close the register to determine the list of unit holders entitled to receive benefits on November 25, and payments will be made to unit holders on December 7, 2022.

Looking ahead to 2023, the industrial real estate sector is expected to thrive, supported by investment promotion policies and benefits for foreign investors establishing production bases in Thailand. According to the Board of Investment (BOI), foreign direct investment (FDI) in the first nine months of this year totaled 275.624 billion Baht, with the highest investments coming from China, followed by Taiwan and Japan, primarily in the EV, electrical appliances, and electronics industries. It is anticipated that investments in these two sectors will continue to grow.

“Currently, PROSPECT REIT has total assets valued at 3,544.48 million Baht, with 61% of the leased area in the Bangkok Free Trade Zone being a free zone, allowing tenants to benefit from tax incentives for importing and exporting goods. The response from both Thai customers and foreign investors, particularly from China and the United States, has been promising. Next year, we plan to invest in the Bangkok Free Trade Zone 2 on Theparak Road and Bangkok Free Trade Zone 3 on Bangna-Trad Road, Km. 19, which are located in strategic logistics locations to accommodate larger logistics and factory clients. The total leased area for these two projects is 70,129 square meters, with an investment not exceeding 1.8 billion Baht, by issuing additional trust units not exceeding 180,000,000 units and filing with the SEC within November to establish a foundation for sustainable growth and enhance the quality of assets in the trust for long-term stability,” Ms. Aranong concluded.