FTREIT announces FY2022 results with plans to invest THB 3.5 billion in FY2023
- Total revenue at THB 3,645.0 million, 6.7% increase Y-o-Y, with net profit on investment of THB 2,518.9 million, up 6.2%.
- Leading position among Thailand’s industrial and logistics trusts, with AUM exceeding THB 46 billion, representing net leasable area over 2.13 million square metres.
- Dividend of 4QFY2022 at THB 1870 per unit, with total dividend for FY2022 adding up to THB 0.7070 per unit.
BANGKOK, 7 NOVEMBER 2022
Frasers Property Industrial REIT Management (Thailand) Company Limited, or ‘FIRM’, as the REIT Manager of Frasers Property Thailand Industrial Freehold & Leasehold REIT, or ‘FTREIT’ reported a robust set of results for FY2022 (October 2021-September 2022), with an increase of total revenue of 6.7% or THB 228.3 million from last year to THB 3,645.0 million. Net profit on investment rose 6.2% or THB 147.9 million to THB 2,518.9 million. Dividend payment from the fourth quarter operations of THB 0.1870 per unit, increasing the accumulated distribution of FTREIT for FY2022 by THB 0.7070 per unit. In navigating through economic recovery in 2023, supported by an improvement of export sectors, foreign investments, and domestic spending as well as tourism industry, FTREIT expects to grows further and has set aside THB 3.5 billion to invest for growing demand for factories and warehouses.
Mr. Thanarat Boonyakosol, Managing Director responsible for FTREIT said: “In 2HFY2022, although the Thai economy has been facing inflation, pressure on purchasing power and consumption, as well as impact on the cost and investment of the domestic business sector, it has also been supported by a recovery in the tourism and services sectors that revamped the retail and e-commerce business. The slowly improving Thai economy combined with the supply chain disruption in the logistics sector at the beginning of the year, resulted in the FTREIT’s average occupancy rate being higher year-on-year at 86.4%, which was a satisfactory performance.”
Based on the satisfactory performance, FTREIT is proposing to pay dividend for the fourth quarter of 2022 at the rate of THB 0.1870 per unit. Thus, as of FY2022, FTREIT will pay a total dividend of THB 0.7070 per unit. The ex-dividend date will be 18 November 2022, record date will be 21 December 2022, and dividend payment date will be 2 December 2022.
At present, the assets under management of FTREIT consist of 668 factory and warehouse buildings with a total leasable area of 2.13 million square metres. This makes FTREIT the industrial trust that owns the largest net leasable area and has the highest percentage of freehold area in Thailand. All projects are located in strategic industrial and logistics locations, namely Bangkok, Ayutthaya, Pathum Thani, Samut Prakan, Prachinburi, and provinces in the Eastern Economic Corridor (EEC).
For 2023, it is anticipated that the overall economy is likely to recover supported by economic drivers including higher consumption and investment as well as a gradual recovery in tourism. There will be more foreign investments and relocation of manufacturers to Thailand. However, there are still obstacles and challenges to face.
Nontheless, in FY2023 (October 2022-September 2023), FTREIT has a target to invest over THB 3.5 billion in industrial assets from Frasers Property Thailand and other companies that focus on locations, international certifications, and green building standards to accommodate the demand for high quality factories and warehouses, which portraits growing demand for next year. This has been supported by the government’s formulation of foreign direct investment policy encouraging more investment in the country to turn Thailand into the investment hub of Southeast Asia.
“FIRM, as a REIT Manager, is proactively anticipating upcoming challenges and devising strategies to mitigate potential risks and harness new opportunities to fuel REIT growth as well as to contribute to stable and sustainable benefits for FTREIT unitholders.” Mr. Thanarat added.
