M.K. Real Estate Reports Q2 2020 Earnings

Home sales revenue increased by 43% along with a successful trust launch

Continuing growth in Recurring Income business

 

M.K. Real Estate Development Public Company Limited (MK) has announced its Q2 2020 earnings, reporting total revenue of 846.19 million baht, a 32% increase from the first quarter. The property development business for sale generated revenue of 711.59 million baht, up 43% from the first quarter. Meanwhile, the rental and service business remains strong, generating revenue of 112.32 million baht. The company is looking to expand its Recurring Income and has successfully launched a trust valued at approximately 3.5 billion baht in the market, continuing to follow its planned strategy to enhance the company's capabilities.

 

Mr. Vorasit Pokachaiyapat, Chief Executive Officer of M.K. Real Estate Development Public Company Limited (MK), reported that the company and its subsidiaries achieved total revenue from sales and services of 846.19 million baht in the first half of 2020 (ending June 30, 2020), representing a 32% increase compared to Q1 2020. The revenue from property development for sale was 711.59 million baht, up 43.2% from the first quarter's 496.92 million baht. The rental and service business (Recurring Income) generated 112.32 million baht. Recently, the company successfully established the PROSPECT Logistics and Industrial Trust valued at approximately 3.5 billion baht, indicating positive growth in this sector according to the planned strategy.

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“Despite the ongoing COVID-19 pandemic during Q2 2020 and the government's lockdown measures, the company's revenue still grew satisfactorily. The total revenue for Q2 this year increased by 32% from the first quarter. This is due to the company's adjustments to minimize the impact of the COVID-19 situation, which began in mid-March. This included changes in sales strategies and marketing communications, with increased online product presentations and careful financial data preparation, as well as product development to align with consumer behavior in the New Normal era, resulting in improved revenue from residential property sales in Q2 this year,”

Mr. Vorasit further stated, “At the same time, the rental and service business of the group continues to grow steadily, helping to mitigate the impact of the current economic slowdown. This sector has been minimally affected by the current economic issues. In this quarter, revenue from renting and services for warehouse and factory space in the Bangkok Free Trade Zone project under the operation of 'Prospect Development Company' was 99.44 million baht, a 7% increase from the same quarter last year. The project is expected to be completed by early next year, and importantly, the establishment of the PROSPECT Trust valued at approximately 3.5 billion baht has been successfully achieved,”

 

It is evident that the performance in each core business is satisfactory, attributed to the 5-year business plan focused on increasing profit share in the rental and service business (Recurring Income), which continues to grow. This helps mitigate the negative impacts of the current economic situation. Additionally, the company's business group has managed to control costs and expenses at appropriate levels. Regarding the operational plan for the second half of the year, Mr. Vorasit stated, “In the second half of the year, the company remains committed to executing its revenue diversification plan to achieve a 50:50 profit ratio between the property development business for sale and for rent and services (Recurring Income) by 2021. Based on our performance so far, we are confident that we will successfully achieve the planned goals.”