Raimon Land Posts 18th Consecutive Quarter of Profit
The Lofts Asoke has achieved strong pre-sales of 49% despite headwind in residential market
Record 18th consecutive quarter of profit achieving net margin of 16% for the three-month period during 3Q 2016
Net Interest-bearing debt to equity ratio stands only at 0.32x
Bangkok, November 18, 2016 - Thailand’s leading high-end real estate company, Raimon Land Public Company Limited (the “Company”) has achieved pre-sales of The Lofts Asoke of THB 1,539 million or 49% as of 3Q 2016. In addition, the Company recognized another strong quarter with net profit of THB 165 million for 3Q 2016, marking the 18th straight quarter of profit.
The Company recognized revenues of THB 1,057 million for 3Q 2016. The Company’s EBITDA and net profit for 3Q 2016 were THB 242 million and THB 165 million, respectively.
Company’s shareholders’ equity has increased significantly from THB 4,451 million at the end of 2015 to THB 4,977 million at the end of September 30, 2016, as a result of steady recognition of net profits.
Strong operating cash flow has continued to see the Company’s balance sheet strengthening, with net-interest bearing debt to equity ratio now standing at 0.32x, a reduction from 0.53x at the end of 4Q 2015.
As of September 30, 2016, the Company now has backlog to be recognized as revenues of THB 5.1 billion. The Company expects pre-sales and backlog to be further solidified from our existing projects and The Lofts Asoke.
As of November 17, 2016, the Company has a market cap of THB 4,398 million with P/E of 4.77x and P/BV of 0.88x. As of 9M 2016, our ROA and ROE are 12.3% and 20.0% respectively.
On Target for The Lofts Asoke
After official launch in 2Q 2016, The Lofts Asoke, our latest high rise development valued at THB 3.2 billion, has sold 120 units out of 211 as of 3Q 2016, bringing pre-sales to 57% and 49% in terms of units and project value respectively.
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 sold and transferred more than 90%, reflecting the company’s strength in the high-end sector. The Lofts Ekkamai has been completed and has started transfer on September 28, 2016.
Mews Yen Akat housing estate by Raimon Land will be completed by 4Q 2016. We expect strong sales going forward.
In Pattaya, in terms of project value, sales and transfers at Zire Wongamat are now about 87% and 80% respectively, while sales and transfers at UNIXX is around 66% and 47% respectively.
Our overall transfer failure rate is less than 1%.