Prospect REIT Management Co., Ltd., the manager of the Property Fund for Investment in Real Estate and Leasehold Rights, Prospect Logistics and Industrial, or “PROSPECT REIT” has announced its Q4/2023 performance, reporting total operational revenue of 158.91 million baht, a 7.1% growth from the previous quarter, with net investment profits reaching a new high of 92.45 million baht, up 10.9% from the prior quarter. The overall occupancy rate across all projects stands at 95.5%, with a contract renewal rate of 97.2%, reflecting the successful execution of the 2023 operational plan. Two new projects have been added following a full capital increase, indicating a bright outlook for the industrial sector in 2024, particularly the potential of the Free Zone area in the prime location of Bangna-Trad, attracting foreign investors to establish continuous production bases.

The company's board of directors has approved the distribution of benefits in the form of dividends to trust unit holders for the operational results from October 1, 2023, to December 31, 2023, at a rate of 0.2175 baht per unit. Although the additional investments in the two new projects have not yet generated full-year income, the trust can still distribute 0.7895 baht per unit to unit holders in 2023. The ex-dividend date (XD) will be on February 29, 2024, with payments to unit holders scheduled for March 15, 2024.

Ms. Oranong Chaitong, Chief Executive Officer of Prospect REIT Management Co., Ltd., as the trust manager, stated, “Last year, PROSPECT REIT effectively faced challenges such as rising interest rates and economic volatility. The professionalism of the trust manager, with experienced management and teams, along with strategies focused on investing in high-quality assets in prime industrial locations that meet the demands of various business sectors, has contributed to PROSPECT REIT's consistent performance. This is evident from the occupancy rate exceeding 95% in 2023 and the trust's assets being high-quality ready-built buildings with diverse leasing formats suitable for both factories and warehouses, attracting over 80% of tenants engaged in manufacturing. The low turnover rate of factory tenants resulted in a high contract renewal rate of 97.2% in 2023, allowing us to provide good and consistent returns to unit holders.”

Regarding the industries of tenants in the new projects that were further invested in during 2023, the BFTZ 2 project on Theparak Road and the BFTZ 3 project on Bangna-Trad Road Km. 19 cover sectors such as solar cell manufacturing, electronics, consumer goods, construction materials, as well as automotive and automotive parts, aligning with the growth trend of the electric vehicle (EV) manufacturing sector. The BFTZ 1 project on Bangna-Trad Road Km. 23 has maintained a strong base of existing tenants, including industries such as paper, food, recycling, logistics, industrial components, and automotive parts, which have thrived alongside the export sector. The majority of tenants across all projects are from Thailand, Japan, China, and the United States, respectively.

“REITs investing in industrial real estate have shown continuous strength despite various challenges, providing good and consistent returns and generating recurring income through rent. Tenants have clear lease terms, and foreign investors are increasingly confident in expanding their production bases to Thailand. Prospect REIT Management, as the trust manager, will continue to monitor the overall economic situation while planning asset management to maintain long-term financial liquidity. An important goal for this year is to expand the total asset value to 10 billion baht and increase the proportion of freehold investments within the trust to create stability and consistently deliver good returns to unit holders,” Ms. Oranong added.