Properties: The Lofts Asoke
The Lofts Asoke has achieved a strong pre-sales of 56% amid the overall slowdown in real estate market
Record 19th consecutive quarter of profit
Continues with strong gross and net profit margin of 37% and 17% respectively for FY 2016
Net Interest-bearing debt to equity ratio stands at 0.35x
Bangkok, 24 Feb 2017 –, Thailand’s leading high-end real estate company, Raimon Land Public Company Limited (the “Company”) has recognized another strong quarter making FY 2016 another successful year with net profit of THB 851 million. The Company’s Board of Directors has proposed a distribution of dividends for FY 2016 in the total amount of THB 250 million (THB 0.07 per share) to the shareholders meeting for consideration and approval.
The Company recognized revenues of THB 5,206 million for FY 2016. The Company’s EBITDA and net profit for FY 2016 were THB 1,140 million and THB 851 million, respectively.
Company’s shareholders’ equity has increased significantly from THB 4,451 million at the end of 2015 to THB 5,108 million at the end of 2016, as a result of steady recognition of net profits.
Strong operating cash flow has strengthened the Company’s balance sheet resulting in net-interest bearing debt to equity ratio now standing at 0.35x, a reduction from 0.53x at the end of 4Q 2015.
As of 31 December 2016, the Company now has backlog to be recognized as revenues of THB 4.05 billion. The Company expects pre-sales and backlog to be further solidified from our existing and future projects.
As of 23 February 2017, the Company has a market cap of THB 4,827 million with P/E of 5.24x and P/BV of 0.97x. As of FY 2016, our ROA and ROE are 11.9% and 17.8% respectively.
Transfer at The Lofts Ekkamai
The Lofts Ekkamai, the third consecutive development of The Lofts’ series in industrial-chic style concept, has already completed and started the transfers. As of 4Q 2016, The Lofts Ekkamai is 99% sold with only 3 units left out of a total of 263. About 40%, in terms of units and value, has been transferred to customers as of 4Q 2016.
The Lofts Ekkamai has been well received by both local and international clients, leading to more than 99% sold, thanks to the simple Loft concept of style, comfort and convenience in a prime urban setting.
On target for The Lofts Asoke
The Lofts Asoke, our latest high rise development valued at THB 3.2 billion, has continued to achieve strong sales with 133 units sold as of 4Q 2016, bringing pre-sales to 63% and 56% in terms of units and project value respectively. The Lofts Asoke has already finished the piling and has commenced construction of the building.
The Lofts Asoke also received “Frost & Sullivan’s Property Development Product Leadership Award” in 2016 as a recognition of the outstanding factors for its product leadership; Design, Location, Exclusivity, and Quality.
Existing Project Updates
In Bangkok, Raimon Land’s track record and performance continues to be one of the strongest in Thailand’s high-end market. Both 185 Rajadamri and River have been more than 90% sold and transferred, reflecting the company’s strength in the high-end sector. The Lofts Ekkamai has been 98% sold in terms of project value with only 3 units left.
The construction of Mews Yen Akat housing estate by Raimon Land will be completed by 1Q 2017. The Company will embark on full sales and marketing campaign soon.
In Pattaya, in terms of project value, sales and transfers at Zire Wongamat are now about 89% and 83% respectively, while sales and transfers at UNIXX is around 67% and 55% respectively.
Our overall transfer failure rate stands at less than 1%.
This year, Raimon Land expects to launch at least one high-rise residential project and one mixed-use development project. Detail of both projects will be released later.