CPNREIT has reported a strong performance for Q2/68, achieving total revenue of 1,523.8 million baht while maintaining an average occupancy rate of 91%. The trust announced a distribution of 0.27 baht per unit to unitholders and is moving forward with significant asset improvements, aiming to expand its investment portfolio by 20 billion baht next year.

CPN Retail Growth Property Fund (CPNREIT) announced its Q2/68 results (April - June), achieving total revenue of 1,523.8 million baht, a 1.3% increase from the same period last year. This growth was driven by rental and service income totaling 1,517.2 million baht, up 1.5%. The breakdown is as follows:
1) The shopping center business generated rental and service income of 1,156.8 million baht. Despite renovations at Central Pinklao and Central Chiang Mai Airport affecting income from common areas, the trust was able to recognize utility and common area service (CAM Charge) income from new contracts at Central Pinklao, which helped offset losses. Excluding the impact from these renovations, revenue would have grown by 5.0% due to increased rental rates.
2) The office building business generated rental and service income of 257.5 million baht, a 12.2% increase due to a 100% occupancy rate at the Unilever House and recognition of utility and common area service income from new contracts at Pinklao Office Building.
3) The hotel business generated rental income of 102.9 million baht, a 4.8% increase due to annual rent adjustments as per contracts, along with other income of 6.6 million baht.

As of the end of Q2/68, the shopping centers in which CPNREIT invests had an average visitor rate of 85% and an average occupancy rate of 91% for shopping centers and office buildings, similar to the previous quarter. Notably, Central Pinklao saw an increase in occupancy following the completion of renovations, and The Nine Towers office building continued to attract new tenants. Additionally, the trust successfully renewed contracts with existing tenants and signed over 97 new leases, covering a total area of 15,963 square meters.

Net investment income was 1,004.9 million baht, down 4.8% compared to the same period last year, primarily due to increased expenses, particularly utility and common area service costs at Central Pinklao under new contracts. Rental and service income from shopping centers decreased due to ongoing renovations at Central Chiang Mai Airport and Central Pinklao. However, compared to the previous quarter, net investment income increased by 1.7%, reflecting effective management.

Despite challenges from the economic situation and rising costs, the trust remains financially strong, confirming a distribution to unitholders from Q2/68 operations at a rate of 0.2700 baht per unit, consisting of a benefit payment of 0.2261 baht per unit and a capital reduction of 0.0439 baht per unit. The XD and XN marks will be set on August 26, 2023, with the book closing date for entitlement to the benefit payment on August 28, 2023, and payment scheduled for September 11, 2023.

Ms. Patmika Pongsuriyamas, CEO of CPN REIT Management Co., Ltd., which manages CPNREIT, added that the trust continues to enhance asset value by investing time and budget into significant renovations at two main projects: 1.) Central Pinklao, transforming it into a Gastronomy Hub with over 200 brands, including Premium, Casual Lifestyle, Grab & Go, Street Food, and Family Food Destination, focusing on family entertainment and learning for children and youth, with a budget not exceeding 1,100 million baht. Renovations began in mid-2023 and are expected to be completed by Q4 2023. 2.) Central Chiang Mai Airport, which will be revamped under the concept of "Local Essence in Modern Twist," creating a destination that reflects the charm of Chiang Mai from a new perspective, adding over 50% new brands, including successful existing brands, with renovations scheduled from August 2023 to mid-2025, with a budget not exceeding 806 million baht.

In addition to the asset improvement plans, CPNREIT has a clear long-term strategy, aiming to increase shopping center assets valued at approximately 20 billion baht next year, which will help raise the market capitalization of the trust by about 10,000-15,000 million baht. This aligns with CPNREIT's long-term vision to double its asset size within eight years by investing in new shopping centers every two years, demonstrating its commitment to strong and sustainable growth in the future.