BANGKOK, 3 NOVEMBER 2023
Frasers Property Industrial REIT Management (Thailand) Company Limited (“FIRM”), REIT manager of Frasers Property Thailand Industrial Freehold & Leasehold REIT (FTREIT), reported an excellent set of results for FY2023 (October 2022 – September 2023) total revenue of THB 3,779.1 million, an increase of 3.7% with the net profit on investments of THB 2,493.5 million, mainly contributed by its strong portfolio management and asset acquisitions. During the year, FTREIT expanded its portfolio by more than 120,000 sqm., taking total assets under management (AUM) to 2.3 million sqm. and making FTREIT the largest industrial REIT in Thailand by AUM.
4Q2023 (July – September 2023) distributions were announced at THB 0.1870 per trust unit, adding up to THB 0.7480 per trust unit in accumulated distributions for FY2023, resulting 5.8% higher than last year. The ex-dividend date, record date and payment date are due on 17, 20 and 30 of November 2023 respectively.
"FTREIT has recorded steady performance in FY2023 as a result of earning income underpinned by an increase in rental demand from factories and warehouses. This has helped the average occupancy rates to remain healthy at 86.2%," said Mr. Thanarat Boonyakosol, Managing Director of FIRM.
In FY2023, FTREIT successfully acquired high-potential assets including 25 units of warehouses and factories from Frasers Property Thailand (“FPT”) totaling 57,000 sqm. The trust also invested in TIP Holding Co., Ltd.’s TIP9 project comprising 9 factory and warehouse buildings. As of 30 September 2023, FTREIT’s portfolio makes up nearly 2.3 million sqm. in leasable area, with freehold assets comprising 72% of the total portfolio or 1.63 million sqm. With these investments, it has positioned FTREIT’s portfolio as the leading industrial and logistics REIT in Thailand.
FTREIT has refurbished its assets to get them lease ready to address the increase in demand for new rental contracts. The revenue from new tenants is expected to be recorded in the following fiscal year.
Looking ahead, FIRM, as the REIT manager of FTREIT, anticipates that its factories and warehouses rental businesses will likely witness further growth, driven by the relocation of electronics and automotive manufacturing bases, as well as infrastructure improvements. Notable projects expected to boost connectivity include the high-speed train connecting three airports, the development of U-Tapao International Airport, Laem Chabang Port Phase 3, and Map Ta Phut Port Phase 3. FTREIT will be a potential beneficiary of these developments which enhance the potential of the Eastern Economic Corridor (EEC), a primary focus for international investors. In FY2024, (October 2023 – September 2024), FTREIT will allocate a budget of more than THB 2 billion to sustain its portfolio expansion and growth.