Mr. Prasert Sri-Ularnpong, Director of LH Mall and Hotel Co., Ltd. as the Sponsor of the LH Shopping Center (LHSC) Real Estate Investment Trust, revealed that Land and Houses Group has been a leading property developer in Thailand for over 40 years, specializing in housing projects and condominiums. The company has expanded its business into developing the Terminal 21 shopping center, launching Terminal 21 Asoke in 2011, which became the group's first flagship shopping center. This center offers a unique experience by incorporating the concept of airport shopping and entertainment to cater to all lifestyles, designed in a Market Street style that simulates the atmosphere of world-class shopping metropolises. The positive reception from visitors led to the successful design of Terminal 21 Pattaya, envisioned as a chic shopping airport, featuring a distinctive 39-meter escalator, the longest in Thailand, and a beachside runway with an airplane, becoming a landmark in North Pattaya near the Dolphin Roundabout. It opened in 2018, with parking for over 2,000 vehicles, located adjacent to the Grand Center Point Hotel Pattaya and near the Grand Center Point Space Pattaya.

Pattaya is recognized as a leading global tourist city, popular among foreigners from countries such as Russia, China, and South Korea, as well as Thai visitors. It offers a variety of attractions catering to all lifestyles and is equipped with comprehensive amenities, making it a year-round travel destination. Additionally, it serves as a hub for events and entertainment. In July, Terminal 21 Pattaya was the starting and finishing point for the Pattaya Marathon 2024, a major national event attracting over 15,000 participants, which drew more than 70,000 visitors to the shopping center daily. Furthermore, Pattaya has continuously developed its infrastructure over the years, including the three-airport rail link project to support the Eastern Economic Corridor (EEC) in Chonburi province, enhancing transportation efficiency.

Mr. Monrat Phadungsit, Managing Director of Land and Houses Fund Management Company Limited (LH Fund) as the manager of the LHSC trust, stated that the trend of declining interest rates, following announcements from several central banks led by the U.S. Federal Reserve and the European Central Bank to lower rates in September, will positively impact the operations of Property Funds & REITs, reducing financial costs. If the Bank of Thailand and financial institutions begin to lower interest rates accordingly.

Retail REITs investing in Tourist Malls are 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, a 35% increase 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, currently invests in Terminal 21 Asoke, attracting a diverse clientele of Thai customers and tourists, benefiting from the growth of the tourism and retail sectors. Recently, LHSC is set to make its first additional investment in the lease rights of Terminal 21 Pattaya, with a total value not exceeding 5.7 billion baht (excluding VAT and related fees). Funding will come from issuing and offering additional trust units valued at up to 3.19 billion baht, with the remainder sourced from loans from financial institutions, expanding the asset portfolio to more than double and balancing investments between Bangkok and Pattaya, helping to diversify risks and create stable income sources, as well as providing opportunities for better returns for trust unit holders.

Dr. Natthakawin Chiamchotipatanakul, Senior Director of Infrastructure and Real Estate Fund Management at Land and Houses Fund Management Company Limited as the trust manager, stated that LHSC is a REIT for the Terminal 21 shopping center under the Land and Houses Group, focusing on international tourists and Thai customers. It benefits significantly from the overall growth of tourism and retail business. Currently, LHSC invests in Terminal 21 Asoke, located in the heart of the city at Asoke-Sukhumvit, surrounded by 4-5 star hotels, high-end condominiums, leading office buildings, educational institutions, and international convention centers, and is a transit point for the BTS Asoke and MRT Sukhumvit lines, which see massive daily ridership. This allows Terminal 21 Asoke to attract a large number of customers, with an average foot traffic of over 47,000 people per day in Q2 2024, a 10% increase 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 net investment profit of 321.4 million baht, growing over 35% from the same period last year, reflecting a remarkable recovery and benefiting from the positive tourism outlook in Thailand. LHSC has a history of consistent dividend payments (six times a year), recently announcing a dividend payout of 0.697 baht per unit from operations in the first eight months of this year. Additionally, LHSC has reaffirmed its quality REIT status by receiving the Best REIT Performance Awards in the Business Excellence category at the SET Awards 2023. The new asset, Terminal 21 Pattaya, is expected to perform well, with an average foot traffic of over 37,000 people per day in Q2 2024, a 10% increase from the same period in 2023, and an average occupancy rate of 99%.

Ms. Jittisa Jaroenpanit, Executive of Investment Banking at Kasikorn Bank Public Company Limited as the financial advisor and co-distributor, stated that LHSC is an attractive alternative asset for investment. Currently, there are positive factors supporting LHSC's prominence, including the downward trend in interest rates, which has led to gradual adjustments in the price index of Property Funds & REITs. Additionally, the growth of the tourism sector positively impacts businesses with revenue growth aligned with tourism. Currently, there are only a few retail REITs investing in shopping centers or retail spaces located in business hubs and tourist attractions benefiting from this tourism growth, like LHSC. Furthermore, the assets that LHSC invests in are developed and managed by Land and Houses Group, a leading property developer in the country, and managed by a fund management company with experience and expertise in real estate and trust fund management. LHSC has a history of regular dividend payments and strong performance, and the additional investment is projected to yield a return rate of over 9.5% in the first year after the additional investment.

For the first additional investment, LHSC plans to announce the maximum offering price for additional trust units on October 29, 2024. Existing LHSC trust unit holders and the general public can reserve purchases from November 4-8, 2024, at the maximum offering price. Existing trust unit holders can reserve through the trust unit distribution managers, including Kasikorn Bank Public Company Limited and Siam Commercial Bank Public Company Limited, while the general public can reserve at Kasikorn Bank Public Company Limited, Siam Commercial Bank Public Company Limited, Innovest X Securities Company Limited, Land and Houses Securities Public Company Limited, and CIMB Thai Bank Public Company Limited.

For existing trust unit holders who are eligible to reserve, the subscription ratio is set at 1 existing trust unit for 0.5941 additional trust units. If the final offering price is lower than the maximum offering price, the difference will be refunded within 7 business days (for bank transfers) and 10 business days (for checks) from the end of the subscription period.

Mr. Yoswee Sutthikulpanit, Executive of Investment Banking and Capital Markets at Siam Commercial Bank Public Company Limited as the financial advisor and co-distributor, stated that the overall capital market has been continuously improving, especially since Q3 2024, with the SET Index rising steadily along with increased average daily trading volume. The PF&REIT sector has also shown significant improvement. Moreover, the capital market will continue to receive support in Q4 2024 from expectations of government economic stimulus policies, the trend of interest rate cuts by the central bank, which will further benefit the PF&REIT sector, as well as new investment funds from the Vayupak Fund and the onset of the high tourism season, which is a major driver of the Thai economy, will help promote the continuous growth of the Thai capital market.

LHSC is considered a high-potential retail REIT, sponsored by Land and Houses, investing in quality assets with outstanding performance and a consistent history of dividend payments. The first additional investment in the lease rights of Terminal 21 Pattaya will enhance the potential for generating income and returns for trust unit holders.

Warning: Investors should understand the nature of the product, the terms of returns, and the risks before making investment decisions.