PROSPECT REIT is set to make its third additional investment in the ownership and lease rights of warehouses and ready-made factories in the Bangkok Free Trade Zone 1, Bangkok Free Trade Zone 2, and Bangkok Free Trade Zone 3, located in the Bangna-Trad and Theparak areas, with a total value not exceeding 3.35 billion baht. This investment is expected to boost the first-year return estimate to 0.87 baht per unit, showcasing the potential of the new assets situated in a strategic area for industry and logistics, featuring the largest Free Zone in the Bangna-Trad area, along with a high average occupancy rate of 96.9% and 100.0% respectively. The maximum offering price for the additional trust units will be announced by May 15, 2025, and will not exceed 8.2 baht per unit. Existing unit holders listed in the register and the general public can subscribe from May 19-23, assuring that the trust has not been affected by the new tax measures from the U.S.

Ms. Ratchanee Mahatdechkul, Managing Director of Prospect Development Co., Ltd., as the main supporter and property manager of PROSPECT REIT, revealed that the three Bangkok Free Trade Zone projects that the trust will further invest in are located in a strategic area for industry and logistics, making them suitable for factories, warehouses, and distribution centers. This has led to continuous interest and demand for leasing space from both domestic and international operators across various industries such as logistics, food and beverage, metal industry, automotive parts, electronics, etc. Additionally, the presence of a Free Zone within the project, which is the largest in the Bangna-Trad area, supports the business operations of importers and exporters establishing factories in Thailand, resulting in ongoing demand for leasing space to expand investments, which is a key factor supporting the trust's growth potential. The availability of diverse rental buildings, including warehouses, ready-made factories, and built-to-suit buildings tailored to customer needs, along with comprehensive public utility systems and coordination services with government agencies for necessary business licenses and repair services during the lease, play a significant role in the decision-making process for operators establishing factories.

The overall demand for ready-made warehouse space in the eastern Bangkok area and Samut Prakan province remains high, with an average occupancy rate of 91% in 2023. The Bangkok Free Trade Zone projects, located in crucial industrial areas, will positively impact the demand for leasing warehouse and factory buildings. Currently, Prospect Development manages over 1 million square meters of space, with a goal to increase to 2 million square meters by 2028.

Ms. Oranong Chaitong, Chief Executive Officer of Prospect REIT Management Co., Ltd., as the trust manager, stated that the Prospect Logistics and Industrial Real Estate Investment Trust, or PROSPECT REIT, was established and registered on the Stock Exchange of Thailand in 2020. It currently has investments in four projects, both in ownership and lease rights of warehouses, ready-made factories, and built-to-suit buildings, with a total rental area of approximately 292,332 square meters on about 294 rai of land, including Bangkok Free Trade Zone 1, Bangkok Free Trade Zone 2, Bangkok Free Trade Zone 3, and Project X44. All four projects are located in key industrial and logistics hubs of the country, easily connecting to airports, ports, and expressways. The current properties have maintained an average occupancy rate of over 90%, reaching 96.8% by the end of 2023. Additionally, in 2023, the trust paid out benefits and capital reductions to unit holders totaling over 0.8560 baht per unit, representing an annualized yield of 10.1% compared to the unit price of 8.5 baht at the end of 2023, ranking among the top in the industrial trust sector.

For this additional investment, PROSPECT REIT will invest in properties that are part of the same projects it is currently invested in, including (1) Bangkok Free Trade Zone 1 on Bangna-Trad Road Km. 23, investing in leasehold rights for land and building for a period not exceeding 15 years, with approximately 158,315 square meters of rental space; (2) Bangkok Free Trade Zone 2 on Theparak Road, investing in leasehold rights for land for a period not exceeding 26 years and in building ownership with approximately 12,481 square meters of rental space; and (3) Bangkok Free Trade Zone 3 on Bangna-Trad Road Km. 19, investing in ownership of land and buildings with approximately 50,882 square meters of rental space. As of February 28, 2023, the new assets in these three projects have high average occupancy rates of 96.9% and 100.0%, respectively, reflecting the strengths of the new assets and this investment, which include:

(1) High-Potential Assets consisting of (1.1) Locations in key industrial and logistics centers close to Bangkok Port, Laem Chabang Port, Suvarnabhumi Airport, Don Mueang Airport, and several industrial estates. Additionally, they are located in the purple zone for industrial operations, allowing tenants to operate both factories and warehouses. There is also potential for positive impacts from the relocation of production bases from China to the ASEAN region if the U.S. raises import taxes on goods from China more than on Thailand. (1.2) Tax benefits for tenants as parts of Bangkok Free Trade Zone 1 and Bangkok Free Trade Zone 3 are designated as Free Zones, granting operators in these areas tax benefits such as exemptions from import and export duties, value-added tax, and excise tax. (1.3) High-quality buildings designed to accommodate the diverse needs of tenants, with comprehensive public utility systems. (1.4) Prospect Development as the property manager, having developed and managed the Bangkok Free Trade Zone projects for over 15 years, currently managing 7 projects with a total area of over 1 million square meters, thus possessing expertise in managing rental warehouses and factories.

(2) This additional investment will increase the proportion of freehold investments to 31.9% from the current 29.9% of the appraised asset value, enhancing the trust's revenue stability and is expected to result in an increase in the first-year estimated benefits and capital reduction from 0.72 baht per unit to 0.87 baht per unit, which is considered high compared to other industrial trusts.

Regarding the new tax measures announced by the United States affecting several countries with trade surpluses, including Thailand, PROSPECT REIT has not yet been impacted by these tax measures, as the number of tenants exporting goods to the U.S. as a primary market is relatively small compared to the total leased area of the trust. Operations continue as usual, with most tenants assessing that these tax measures may have short-term impacts, prompting them to seek other markets concurrently. Additionally, there are no plans to relocate production bases to other countries, as many ASEAN countries are also affected by these tax measures, and relocating production incurs high costs. Meanwhile, the lease renewal rate in the first quarter of the year reached 100%, and the average occupancy rate remains high.

Mr. Komkrit Raksakulkiat, Head of Investment Banking at TISCO Bank Public Company Limited and representative of TISCO Securities Company Limited as financial advisor and underwriter, stated that the trust is an attractive asset for investment to diversify risks, especially during a declining interest rate cycle, as it provides returns from dividends. Recently, most industrial trusts have shown outstanding returns, with PROSPECT REIT having strengths in its assets and the locations of Bangkok Free Trade Zone 1, Bangkok Free Trade Zone 2, and Bangkok Free Trade Zone 3, which have high potential and continuous demand from tenants.

After PROSPECT REIT submitted a request for permission to offer trust units and a filing statement to the SEC, it has received approval from the SEC, and the filing is now effective. This additional investment is valued at no more than 3.35 billion baht, which will come from the offering of no more than 310 million trust units and loans from financial institutions not exceeding 1.45 billion baht. The XR (Exclude Right) mark is set to be established on April 28, 2025, to determine the rights of existing unit holders to subscribe for additional trust units. Existing unit holders can subscribe from May 19-23, 2025, through the website https://www.tiscosec.com or at the headquarters of TISCO Securities Company Limited as the underwriter. Subscriptions will be at the maximum offering price, which will be announced by May 15, 2025, and will not exceed 8.2 baht per unit, with a subscription ratio of 1 existing trust unit to 0.6648 additional trust units offered.

General investors can also subscribe from May 19-23, 2025, through TISCO Securities Company Limited, Siam Commercial Bank Public Company Limited, and Innovest X Securities Company Limited, at the maximum offering price to be announced by May 15, 2025, which will not exceed 8.2 baht per unit.

The final offering price is expected to be announced by May 26, 2025, through the Stock Exchange of Thailand's website after gauging subscription demand from institutional investors (Bookbuilding). If the final offering price is lower than the maximum offering price, the difference will be refunded to subscribers within 5-10 business days from the end of the subscription period, and the additional trust units are expected to be traded on the Stock Exchange of Thailand in June.