Mr. Nopparat Sunthornjitjaroen, Chairman and CEO of Land and Houses Public Company Limited (LH), stated that in 2024, the company aims for sales (Bookings) of 31 billion baht and transfers of 28 billion baht, with rental income from real estate targeted at 8.54 billion baht.

This year, the company plans to launch 11 new projects, including 10 single-family homes and 1 townhouse, with a total value of 30.2 billion baht, a 30% decrease compared to last year due to the launch of the condominium project 'Wand Time at Chao Phraya' valued at 15 billion baht at the end of 2023.

However, the total number of projects in operation for 2024 is expected to be around 84 projects, valued at 98.55 billion baht, consisting of 77 horizontal projects worth 82.55 billion baht and 7 condominiums valued at 16 billion baht. The average selling price per unit in 2024 is estimated to be 9.4 million baht (compared to 9.6 million baht in 2023).

Mr. Watcharin Kasinruek, Managing Director of the Housing Development Division, reported that in 2023, the company launched 17 new projects with a total value of 43.46 billion baht, exceeding the original plan of 34.96 billion baht due to the launch of the 'Wand Time at Chao Phraya' project valued at 15 billion baht, replacing the 'The Key Srinakarin' project valued at 6.5 billion baht. The company invested approximately 6.1 billion baht in land acquisition for residential development. In 2023, the sales breakdown was 68% for single-family homes, 5% for townhouses, and 27% for condominiums, with 90% of sales occurring in Bangkok and surrounding areas and 10% in other provinces. The sales ratio for horizontal homes accounted for 73%, while condominiums made up 27%. Additionally, homes priced over 10 million baht represented about 57% of total sales.

Mr. Chokchai Walitwarangkoon, Managing Director of the Condominium Operations Division, noted that some segments of the condominium market have recovered post-COVID. The company adjusted its plans to launch the 'Wand Time at Chao Phraya' project at the end of October instead of the previously planned project in Srinakarin to meet the demand for riverside condominiums, which received a positive response, generating over 5 billion baht in sales, accounting for 35% of the project's value, exceeding the initial forecast of 3-4 billion baht. As a result, in 2023, the company achieved condominium sales exceeding 6.2 billion baht, a 176% increase from the previous year, representing 27% of the company's total sales.

For 2024, interest rates are expected to gradually decrease in the second half of the year, and government measures extending the reduction of transfer and mortgage fees for another year will positively impact condominiums priced below 3 million baht. Currently, the company has 7 condominiums ready for sale, with a total value exceeding 16 billion baht, and there are no plans to launch new projects this year, targeting condominium sales of 5.5 billion baht and transfers of 2 billion baht.

Mr. Wit Tantivorawong, Managing Director of Support Services, mentioned that in 2023, the company issued bonds worth a total of 16 billion baht with a maturity of 2-3 years and an average interest rate of 3.2% per year. By the end of 2023, the company had net interest-bearing debt of approximately 58 billion baht, with a net debt-to-equity ratio of 1.12 and an average cost of financing of 2.75%. The overall rental real estate sector in 2023 experienced strong growth, particularly from hotel and shopping center businesses in Thailand, with expected revenue increases of over 70% and 100%, respectively, from the previous year due to the recovery of the tourism sector.

Additionally, the company invested in rental real estate through LHMH and LH USA, totaling 2.87 billion baht, including the development of the Grande Centre Point Surawong hotel valued at 920 million baht, the Grande Centre Point Lumpini project at 870 million baht, and the Grande Centre Point Lumpini project at 1.08 billion baht. Furthermore, LHMH made additional investments in the LH Hotel property rental rights trust (LHHOTEL) totaling 1.952 billion baht, increasing its investment share in the trust from 14.73% to 26.17%.

LHMH launched a new project, the Grande Centre Point Surawong hotel, in November 2023, with an investment of 2.3 billion baht, and sold two hotels, Grande Centre Point Pattaya and Grande Centre Point Space Pattaya, to the LHHOTEL trust for 9.4 billion baht, resulting in a pre-tax profit recognition of approximately 2.5 billion baht in Q4, with the remaining profits to be recognized gradually in the income statement between 2024 and 2032.

For the operational plan in 2024, the company plans to issue bonds worth 16 billion baht, expecting the debt-to-equity ratio to remain close to 1.0, down from the end of 2023. The company has prepared a total investment budget of approximately 11.5 billion baht, including 5 billion baht for land acquisition for residential development and 6.5 billion baht for rental real estate investments. Currently, the company has 16 projects generating rental income, both operational and under development, managed by LHMH (12 projects) and LH USA (4 projects). The company plans to sell one shopping center into the trust.