RML continues to demonstrate favorable performance with Q3/22 operating results improving by 75% as ‘The Estelle Phrom Phong’ has been transferred the share of income, envisaging a business turnaround in 2023 | Raimon Land
Press Releases
15 November 2022

RML continues to demonstrate favorable performance with Q3/22 operating results improving by 75% as ‘The Estelle Phrom Phong’ has been transferred the share of income, envisaging a business turnaround in 2023

Raimon Land Public Company Limited (RML), a leading luxury and super-luxury real estate developer, revealed that its operating loss for Q3/22 dropped by 75% compared to the previous quarter. The improvement in financial performance was attributable to the share of income from ‘The Estelle Phrom Phong’, an ultra-luxury condominium project which has been completed and commenced the transfer of ownership over the units since the third quarter of 2022. The Company has vowed to turn around in 2023 by adopting an ‘asset-light’ strategy, which will lead to cost reduction and lower interest burdens. Moreover, RML is scheduled to open ‘One City Centre’, Thailand’s tallest grade-A office building, to bolster recurring income and generate consistent cash flows as well as setting to launch two new branded residences.

Mr. Korn Narongdej, Chief Executive Officer of Raimon Land Public Company Limited (RML), revealed, “Our operating loss for Q3/22 was 47.6 million Baht, an improvement from the loss of 193 million Baht registered for Q2/22. The revenues were generated from the backlog of the Lofts Silom and recurring income from project management and marketing commission. The better financial performance was derived from the share of income from ‘The Estelle Phrom Phong’, a unique ultra-luxury condominium in the heart of Sukhumvit Road, which has been completed and commenced the transfer of ownership over condominium units since the third quarter of 2022. This project is developed under a joint venture between RML and Tokyo Tatemono Company Limited and has been 75% sold with a fast pace of ownership transfer, resulting in the company’s ongoing recognition of the share of income. Total transfer is expected to achieve the target of approximately 2 billion Baht this year. Another joint venture development with Tokyo Tatemono is ‘Tait Sathorn 12’, a luxury condominium in the heart of Sathorn which has already been sold by 85%. These two projects are well received, resulted from the strong brand trust of both companies. Raimon Land is a prestigious brand of luxury and super-luxury real estate developer with over 35 years of experience and expertise while Tokyo Tatemono is also a leading real estate developer in Japan.

The company will gradually recognize the revenue backlog throughout 2022. As of 30 September 2022, the total backlog stood at 6,100 million Baht, including 2,700 million Baht from ‘The Estelle Phrom Phong’ which has been completed and ready to transfer and 3,400 million Baht from ‘Tait Sathorn 12’ which is currently under construction and will be continuously recognized in 2023.

As for the business direction in 2023, we will strive to make a business turnaround by speeding up revenue recognition, creating a balance between the real estate revenue and recurring income and diversifying the revenue streams. RML plans to open ‘One City Centre’, the tallest grade-A office building on a potential location adjacent to Ploenchit BTS Station, which is a mega-project developed under the joint venture between RML and Mitsubishi Estate Group, a leading real estate developer in Japan. Following the launch of service, the building will be a contributing factor that bolsters the company’s recurring income and generates consistent cash flows. Besides, we aim to focus on the asset-light strategy by collaborating with landlord partners to jointly develop projects on their land plots. This strategy will enable the company to manage financial cost more efficiently. Furthermore, RML also plans to launch 2 new branded residential projects, targeting total sales revenue of 8,200 million Baht in 2023.

Nevertheless, the company raises funds for its real estate development projects through borrowing from financial institutions, seeking joint venture partners and issuing debentures. It has submitted a filing for the second issuance of debentures worth 250 million Baht in October 2022 which will be offered in November. This will be followed by the third issuance of debentures at a total value of up to 400 million Baht which is slated for the offering by the end of this year. All these debentures are expected to receive great response and interest from investors similar to those issued during the middle of this year at a total value of 1,050 million Baht which were sold out quickly. Such successful debenture offering reflects solid investors’ trust and confidence in the company.