PROSPECT REIT showcases strong interest from existing unit holders and the general public in subscribing for additional trust units, with significant demand from institutional investors, reinforcing investor confidence. The trust is set to proceed with its third investment in the ownership and leasing rights of warehouses and ready-made factories within the Bangkok Free Trade Zone 1, Bangkok Free Trade Zone 2, and Bangkok Free Trade Zone 3 in the Bangna-Trad and Theparak areas, with a total investment value of 3.21 billion baht. The expected first-year return is projected to rise to 0.87 baht per unit, with the additional trust units anticipated to be listed on the stock exchange on June 9.

Mr. Komkrit Raksakulkiat, Head of Investment Banking at TISCO Bank Public Company Limited and representative of TISCO Securities Company Limited as financial advisor and underwriter, revealed that after the property investment trust and leasing rights trust, PROSPECT Logistics and Industrial, opened for existing unit holders and the general public to subscribe for additional trust units from May 19 to 23 at a final offering price of 7.2 baht per unit, the response was enthusiastic from all investor groups, reflecting their confidence in PROSPECT REIT. This additional investment will enhance income and opportunities for better returns. Following the opening for institutional investors to subscribe for additional trust units from May 27 to 29, it is expected that the additional trust units will be listed on the Stock Exchange of Thailand on June 9, which will further enhance liquidity in trading the trust units.

Ms. Oranong Chaitong, CEO of Prospect REIT Management Company Limited, as the manager of PROSPECT REIT, stated that the offering of additional trust units has received a positive response from investors. PROSPECT REIT will proceed with its third investment in three new projects from Prospect Development Company Limited, located within the same project as the currently invested assets, namely: (1) Bangkok Free Trade Zone 1, Bangna-Trad Road Km. 23, which will invest in leasing rights for land and building for a period not exceeding 15 years, with approximately 158,315 square meters of rental space; (2) Bangkok Free Trade Zone 2, Theparak Road, which will invest in leasing rights for land for a period not exceeding 26 years and in building ownership, with approximately 12,481 square meters of rental space; and (3) Bangkok Free Trade Zone 3, Bangna-Trad Road Km. 9, which will invest in land and building ownership of the project, with approximately 50,882 square meters of rental space. As of the end of February 2023, the new assets from these three projects have an average occupancy rate of 96.9% and 100%, respectively.

This additional investment has a total value of 3.21 billion baht, which will come from the offering of 269 million trust units and loans from financial institutions amounting to 1.45 billion baht. Following this additional investment, the first-year benefit payment of PROSPECT REIT is expected to increase from 0.72 baht per unit to 0.87 baht per unit, and the proportion of investment in freehold ownership is expected to rise from 29.2% to 31.4%.

Currently, PROSPECT REIT's assets include investments in ownership and leasing rights of warehouses, ready-made factories, and built-to-suit buildings in Bangkok Free Trade Zone 1, Bangkok Free Trade Zone 2, Bangkok Free Trade Zone 3, and Project X44 in the Bangna-Trad and Theparak areas, which are strategically located as important industrial and logistics hubs connecting to the Port of Bangkok, Laem Chabang Port, Suvarnabhumi Airport, Don Mueang Airport, and several industrial estates. The current assets of the trust have a total rental area of 292,332 square meters on approximately 294 rai of land, with an average occupancy rate of 96% as of the end of Q1 2023. After the third additional investment, the total rental area will increase to 514,010 square meters.

Regarding the new tax measures announced by the U.S. against several countries, including Thailand, PROSPECT REIT has not yet been affected by these tax measures, as tenants exporting goods to the U.S., which is a major market, are few compared to the total rental area of the trust. Operations continue as normal, with most tenants assessing that these tax measures may have a short-term impact, prompting them to seek other markets concurrently. There are currently no plans to relocate production bases to other countries, as many ASEAN countries are also affected by these tax measures, and relocating production bases involves facing costs. Additionally, foreign investors are negotiating to lease space in preparation for relocating production bases from China to mitigate risks from U.S. retaliatory tax measures. The lease renewal rate in Q1 2023 reached 100%. Furthermore, the agreement between the U.S. and China to reduce import tariffs for 90 days is a positive factor for the overall economy and investment of operators in various industries.