Prospect REIT Management Co., Ltd., the trust manager of the Prospect Logistics and Industrial real estate investment trust, PROSPECT REIT, has unveiled its robust performance for Q2/2023, with total operating income reaching 144.30 million Baht, reflecting a growth of 28.38% from the previous quarter, leading to a net investment profit of 81.91 million Baht.

This growth follows the full-quarter recognition of income from new assets located strategically on Bangna-Trad Road, specifically the Bangkok Free Trade Zone 2 and 3 (BFTZ 2 and BFTZ 3), which boasts an impressive average occupancy rate of 95.4%. This indicates an increasing interest from Chinese investors in utilizing warehouse and factory spaces managed by the trust, driven by their plans to relocate production bases to Thailand.

The trust is set to announce a distribution of net profit from operations for the period from April 1, 2023, to June 30, 2023, at a rate of 0.2200 Baht per unit. The ex-dividend date (XD) will be on August 29, 2023, with payments to unit holders scheduled for September 11, 2023.

Ms. Oranong Chaitong, Chief Executive Officer of Prospect REIT Management Co., Ltd., as the trust manager, stated, "The overall performance for Q2/2023 is exceptionally strong, particularly with the two new projects, BFTZ 2 on Theparak Road and BFTZ 3 on Bangna-Trad Road Km. 19, attracting tenants from rapidly growing industries, including:

  • Solar Cell and related equipment manufacturing
  • Battery and EV component manufacturing
  • Consumer goods, among others

Most of the investors are from China, who are avoiding trade wars and geopolitical conflicts, resulting in a significant increase in this quarter's performance, allowing for dividends to be paid as anticipated. This reflects the quality of both existing and new assets in prime locations, situated in purple zone urban planning for industrial use, including Free Zone areas that cater to businesses involved in import-export activities. We are confident in our ability to manage effectively to deliver good and consistent returns to unit holders in the long term.

The growth of the industrial sector among foreign investors aligns with investment promotion data from the Board of Investment (BOI), which reported that in the first six months of 2023, total investment value reached 364.42 billion Baht, a 70% increase compared to the same period last year. Most investments are in targeted industries, including electrical and electronics, agriculture and processed food, and automotive and automotive parts, such as tires, axles, hybrid transmission components, and EV charging stations. Additionally, there has been a significant number of applications for promotion in the electricity generation sector, particularly for renewable energy projects such as solar, wind, biomass, and biogas.

The growth of the warehouse and factory trust sector remains bright in the second half of the year. Overall data indicates a positive trend in foreign investor confidence in Thailand, which supports the growth of the warehouse and factory rental business. With the strengths of PROSPECT REIT, which has assets located in purple zone urban planning for industrial use, tenants can utilize both warehouse and factory spaces effectively. The high-quality buildings are fully utilized, and we have a skilled Property Manager providing One-Stop-Service, facilitating necessary operational permits for tenants. These advantages create a competitive edge and attract foreign investors to lease spaces in our projects. Currently, the occupancy rate for factory spaces is at 79%. We also have a clear goal to expand total asset value to 10 billion Baht by 2024, with plans to study the feasibility of investing in new quality assets this year to continuously strengthen the performance of PROSPECT REIT," Ms. Oranong added.

Furthermore, PROSPECT REIT highlighted industry trends to watch, as evidenced by the statistics of investors seeking to lease spaces, including the manufacturing of EV-related equipment and components, as well as consumer goods industries. There is also a trend towards enhancing the ecosystem of the industrial sector, where tenants in related businesses will choose to expand within the same project area to form clusters in each industry, facilitating reduced transportation costs for raw materials or production components.