At a glance
- Company
- Frasers Property Industrial REIT Management (Thailand) Company Limited
- Announcement
- Financing
- Location
- Bangkok, Thailand
Key figures
- FY2023 total revenue
- THB 3,779.1 million
- FY2023 net profit
- THB 2,493.5 million
- FY2023 distribution per unit
- THB 0.7480 per unit
- Approved maximum additional trust units
- 919,016,114 units
- Assets under management value
- THB 49,825 million
- Total leasable area
- 2.26 million sqm
People
- Thanarat BoonyakosolManaging Director of FIRM
BANGKOK, January 31, 2024 -- Frasers Property Industrial REIT Management (Thailand) Company Limited (“FIRM”), the REIT manager of Frasers Property Thailand Industrial Freehold & Leasehold REIT (“FTREIT”), today held its 2024 Annual General Meeting (AGM) to report on FTREIT’s FY2023 performance (1 October 2022 - 30 September 2023). FTREIT recorded total revenue of THB 3,779.1 million, a 3.7% year-on-year increase, with net profit of THB 2,493.5 million. FTREIT announced a final dividend distribution from its FY2023 operating results to trust unitholders, totalling THB 0.7480 per unit for four quarters, an increase of 5.8% from the previous year.
Mr. Thanarat Boonyakosol, Managing Director of FIRM, said, “FTREIT maintained its average occupancy rate of 86.2% with a renewal rate exceeding 81.8%, demonstrating solid demand for the trust’s high performing assets in strategic industrial and logistics locations including Bangkok, Ayutthaya, Pathum Thani, Samut Prakan, Prachin Buri, and Eastern Economic Corridor (EEC) provinces. Core assets of FTREIT, consisting of factory spaces and warehouses, are gaining significant attention from prospective tenants due to shifts in production bases influenced by the China Plus One policy. This has led to a noticeable surge in demand for rental space, especially factory buildings, from within the automotive and electronics sectors.”
At present, FTREIT's assets under management comprise 701 factory and warehouse buildings with a total leasable area of 2.26 million sqm. This positions FTREIT as Thailand’s leading industrial trust with the largest freehold portion of net leasable area and valued with assets under management at THB 49,825 million, thus guaranteeing FTREIT’s property value for the long term.
At the AGM, a general mandate for the issuance of additional trust units, not exceeding 919,016,114 units, was approved by unitholders. This measure aims to maintain an appropriate loan-to-value (LTV) ratio for FTREIT to ensure sustainable returns for unitholders. The issuance of additional trust units serves as an additional source of funds, complementing existing loans.
For FY2024 (1 October 2023 - 30 September 2024), FIRM will continue to closely monitor the macroeconomic environment, including inflation and interest rates, with a plan to structure its capital in alignment with the conditions of both the money and capital markets. This strategy aims to better manage financial costs, while facilitating growth with potential investment in new assets from Frasers Property Thailand and other external entities. To conclude, FIRM is well-positioned to meet leasing demand, which it will achieve by enhancing and maintaining its properties, upgrading and improving its assets’ sustainable performance, and remaining attentive to the requirements of tenants.
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In brief
Frasers Property Industrial REIT Management (Thailand) Company Limited, manager of FTREIT, held the trust’s 2024 AGM in Bangkok and presented results for FY2023. The company reported revenue of THB 3,779.1 million and net profit of THB 2,493.5 million, alongside a final distribution of THB 0.7480 per unit for the year. Unitholders approved a general mandate allowing issuance of up to 919,016,114 additional trust units. The company says the mandate will provide another funding source alongside loans and support management of FTREIT’s loan-to-value ratio. FTREIT’s assets include 701 factory and warehouse buildings, with 2.26 million sqm of leasable area and assets under management valued at THB 49,825 million. For FY2024, FIRM plans to monitor economic and capital-market conditions while considering investment in new assets.
Key takeaways
- FIRM reported FTREIT FY2023 revenue of THB 3,779.1 million and net profit of THB 2,493.5 million.
- Unitholders approved a general mandate for up to 919,016,114 additional trust units.
- The FY2023 distribution totalled THB 0.7480 per unit for four quarters.
- FTREIT’s assets under management were valued at THB 49,825 million, according to the release.
- FIRM says it may pursue new asset investments during FY2024 while monitoring economic conditions.
