Thailand’s largest industrial trust FTREIT reports a robust first quarter for FY2023
with plans to invest THB 3,500 million increasing its leasable area to 2.3 million sqm
- Announced Q1/FY2023 (October – December 2022) total revenue of 932.2 million baht, a 3% year-on-year increase and net profit on investment of 635.7 million baht.
- Results driven by an increase in leasable area from investments in the previous year and FTREIT’s ability to maintain a high average occupancy rate of 85.6%.
- Dividend payment for Q1/FY2023 will be paid at the rate of 0.1870 baht per trust unit.
BANGKOK, 3 FEBRUARY 2023
FTREIT has revealed its operating results for the first quarter of FY2023 (October – December 2022), generating total revenue of 932.2 million baht, a 3% increase, while net profit on investment of 635.7 million baht, after investments in additional assets in the previous year. FTREIT maintained an average occupancy rate of 85.6%. The dividend payment for Q1/FY2023 will be paid at the rate of 0.1870 baht per trust unit. It is anticipated that, in 2023, the Thai economy will make a full recovery, which help increase the demand for renting factories and warehouses. The firm is aiming to invest 2,000 – 3,500 million baht to increase 150,000 square metres of net leasable area, totalling around 2.3 million square metres, reinforcing its position as Thailand’s leading industrial trust.
Mr. Thanarat Boonyakosol, Managing Director of Frasers Property Industrial REIT Management (Thailand) Company Limited (FIRM), as the REIT Manager of Frasers Property Thailand Industrial Freehold & Leasehold REIT (FTREIT), disclosed FTREIT’s operating results for the first quarter of the fiscal year 2023 (October – December 2022). Total revenue was 932.2 million baht, representing an increase of 26.4 million baht or 3% compared to the same period last year with the net profit on investment amounted to 635.7 million. The key factors for the rise were mainly the increase in net leasable area from investments in the previous year and the higher Average Occupancy Rate of 85.6%. Due to its exceptional performance, the REIT announced the dividend payment for the 1st quarter of 2023 at the rate of THB 0.1870 per trust unit, which will be paid on 2 March 2023.
“In the first quarter, FIRM was able to manage FTREIT effectively by creating stable and continuous growth. It also benefited from economic factors conducive to sustaining growth. Measures to revitalise the economy and support the tourism sector provide an important impetus for the Thai economy to recover. In addition, foreign investors gradually returned to invest in Thailand on the back of the government’s policy to promote investment in various mega projects that have progressed, especially transportation infrastructure. These help build investor confidence and supports the country’s ability to accommodate the opportunity to relocate or expand the production base from foreign investors,” Mr. Thanarat added.
The Thai economy’s direction in 2023 is expected to be driven by a fully operated tourism sector, an increase in investment by the public and the private sectors, momentum from the increased spending power on consumption, and economic stimulus measures from the government. All of this contributes to a rise in the demand for factory and warehouse space leasing.
“This year, the company has prepared an investment plan of about 2,000 – 3,500 million baht for investing in an additional leasable area of approximately 150,000 square metres, expanding the trust’s portfolio to 2.3 million square metres, an increase from 2.13 million square metres in 2022. FTREIT focuses on investing in high-quality assets from Frasers Property (Thailand) Group and its subsidiaries whose land is located in strategic locations of industrial and logistics sectors, with great potential and growth to generate a continuous and stable return. This allows FTREIT to maintain its position as the industrial REIT with the largest net leasable area in Thailand and supports the firm’s ability to generate and sustainable good returns for FTREIT’s trust unitholders,” Mr. Thanarat concluded.
