LHSC, the REIT for the Terminal 21 Shopping Center from Land and Houses Public Company Limited, has showcased outstanding performance, with a net profit from investments of 321.4 million baht in the first half of 2024, representing a growth of over 35% compared to the same period last year. The REIT has declared a total dividend of 0.527 baht per unit for the first half, yielding more than 10% relative to the current price, reaffirming the potential of the asset invested in the "Terminal 21 Asoke" project, the flagship shopping center of Land and Houses, located in the heart of Asoke-Sukhumvit, a business and tourism hub in Bangkok. The REIT is also moving forward with a new investment target, the "Terminal 21 Pattaya" project, with plans to offer additional trust units for sale by November.

Mr. Monrat Padungsit, Managing Director of Land and Houses Fund Management Company Limited (LH Fund), as the manager of the LH Shopping Centers Leasehold Real Estate Investment Trust (LHSC), revealed that the retail REIT investing in tourist malls is expected to see good revenue growth in line with the increasing number of tourists and consumer spending. In the first six months of this year, 17.5 million foreign tourists visited Thailand, an increase of approximately 35% compared to the first half of 2023. The Tourism Authority of Thailand forecasts that 36 million foreign tourists will visit Thailand in 2024. LHSC, managed by LH Fund and currently investing in the Terminal 21 Asoke shopping center, benefits from a diverse customer base of Thai nationals and international tourists, clearly reflecting the growth in the tourism and retail sectors.

Dr. Natthakawin Chiamchotipattanakul, Senior Director of the Infrastructure and Real Estate Fund at Land and Houses Fund Management Company Limited, as the trust manager, stated that LHSC currently invests in the leasehold rights of the Terminal 21 Asoke shopping center, the flagship shopping center of Land and Houses, which is designed to provide a unique shopping experience through decor inspired by landmarks from cities around the world. Located in the heart of Asoke-Sukhumvit, surrounded by 4-5 star hotels, condominiums, leading office buildings, educational institutions, and international convention centers, the project is also a connection point for the BTS Asoke and MRT Sukhumvit lines, which see a massive daily ridership. This makes the Terminal 21 Asoke shopping center highly attractive to customers, with an average foot traffic of over 47,000 people per day in Q2 2024, an increase of nearly 10% from the same period in 2023, and an average occupancy rate of 98%.

In the first half of 2024, LHSC reported total investment income of 696.3 million baht and a net profit from investments of 321.4 million baht, reflecting a remarkable recovery and benefiting from the overall growth of Thai tourism. The REIT has already announced a dividend payment for the first half of 0.527 baht per unit, yielding over 10% compared to the current price.

Recently, the LHSC trust is preparing to expand its investment into Pattaya, a leading tourist city in Thailand that attracts visitors from around the world, with continuous domestic tourism. It plans to invest further in the leasehold rights of the “Terminal 21 Pattaya” project, another quality shopping center from Land and Houses that is popular among both international tourists and Thai visitors, to strengthen its asset portfolio and enhance the potential for better returns for trust unit holders.

The Terminal 21 Pattaya project is a landmark shopping and lifestyle center located in North Pattaya, situated at the Dolphin Roundabout, accessible via North Pattaya Road, Pattaya Second Road, and Phettrakun Road, which are the main roads of North Pattaya. It is conveniently located just 1.5 hours from Bangkok and offers parking for over 2,000 vehicles. The project is also adjacent to the Grand Center Point Hotel Pattaya and near the Grand Center Point Space Pattaya, surrounded by 4-5 star hotels. Inside the Terminal 21 Pattaya shopping center, there are spacious areas for both indoor and outdoor events. Last July, it served as the starting point and finish line for the Pattaya Marathon 2024, a major national event that attracted over 15,000 participants, drawing more than 70,000 visitors to the shopping center daily. In Q2 2024, the average foot traffic reached over 37,000 people per day, an increase of nearly 10% compared to the same period in 2023, surpassing pre-COVID-19 levels, with an average occupancy rate of 99%.

LHSC plans to invest in the Terminal 21 Pattaya project with a total value not exceeding 5.7 billion baht (excluding VAT and related fees). The funding will come from the issuance and offering of additional trust units not exceeding 345 million units, with the remainder sourced from loans from financial institutions. The SEC has already accepted the application for the offering of trust units, the information statement, and the draft prospectus (filing) and is currently under review for implementation. The additional trust units are expected to be offered for sale by November 2024, with Kasikorn Bank Public Company Limited and Siam Commercial Bank Public Company Limited serving as financial advisors and joint underwriters.