• FPT announces continuous growth in its industrial real estate business, having successfully closed deals for Build-to-Suit warehouse projects with several leading companies. The demand for Ready-Built factories and warehouses remains high, with plans to book profits from land sales to Midea and asset sales to the FTREIT trust. In the commercial real estate sector, rental income from office buildings continues to grow.
  • The rental rate for factories and warehouses managed by FPT has reached a five-year high of 82% due to strong demand for strategically located factories and warehouses.
  • FPT aims to sell industrial assets worth over 3 billion baht to the FTREIT trust within the fiscal year 2020.
  • The company reported total revenue of 4.609 billion baht and a net profit of 308 million baht for Q1/2020, driven by increased recurring income from the industrial and commercial real estate sectors.

Bangkok, February 12, 2020

Frasers Property (Thailand) Public Company Limited or “FPT”, a leader in comprehensive real estate platform services, announced continuous growth in its Q1/2020 performance, particularly in the industrial and commercial real estate sectors.

Mr. Sopon Racharaksa, Managing Director of Frasers Property Thailand stated, "Our industrial real estate business continues to grow, resulting in an increased occupancy rate of 82% for managed spaces. Additionally, there is a strong demand for Build-to-Suit warehouses from both existing tenants expanding their businesses and new demand from fast-moving consumer goods (FMCG), e-commerce, and the automotive industry, which are driving business growth at this time. Furthermore, we are confident in achieving our operational targets this year, particularly in developing a total of 150,000 square meters of Build-to-Suit projects."

Moreover, FPT is preparing to book profits from the sale of industrial land in the EEC area to Midea Group from China for the development of the largest smart appliance manufacturing plant outside China. FPT is also set to open additional land nearby to accommodate the supply chain needs of Midea Group, which is relocating many production bases to Thailand. For the fiscal year 2020, the company aims to sell assets to the FTREIT trust worth over 3 billion baht.

The industrial real estate sector demonstrated strong performance in Q1/2020 (October - December 2019), with rental and service income totaling 442 million baht, a 4.60% increase compared to the same period last year. The occupancy rate for factory buildings reached a five-year high, increasing from 72% last year to 75%, while the warehouse occupancy rate also improved from 81% last year to 86%, benefiting from the development in the EEC area and the relocation of production bases from China.

The residential real estate sector generated total revenue of 3.546 billion baht in Q1 of the fiscal year 2020, a slight decrease of 5.6% compared to the previous year due to market conditions following strict housing loan-to-value (LTV) measures. However, it is expected that the impact may ease following the relaxation of these measures. In December 2019, Golden Land recorded total presales of 7.1 billion baht from 58 ongoing projects, with 3.654 billion baht in booked homes awaiting transfer.

The commercial real estate sector saw a growth of 5.34% compared to the previous year, driven by increased rental income from FYI Center and Samyan Mitrtown projects.

FPT's consolidated financial statements for the first quarter of the fiscal year 2020, ending December 31, 2019, reported total revenue of 4.609 billion baht and a net profit of 308 million baht. In this quarter, compared to the same period last year, there were no asset sales to the trust, so after adjusting for last year's asset sales, total revenue decreased only slightly by 3.6% compared to the previous year, due to the slowdown in the housing market.

"Q1/2020 marks a strong start to the year 2020, with performance exceeding expectations. FPT will continue to develop various high-value projects and seek additional investment opportunities abroad, creating added business value together with Golden Land, which will ensure sustainable growth for the company's shareholders," Mr. Sopon concluded.