Frasers Property Thailand Industrial Freehold & Leasehold REIT (FTREIT) aims to sustain growth in revenue of 15% in the fiscal year ending on Sept 30 this year, as the industrial sector remains robust while planning to invest 2 billion baht to buy new assets this year.
Bhumpharn Arunthammakul, vice-president of investment and investor relations, said FTREIT expects to generate 3.3-3.5 billion baht in revenue in the fiscal year 2021, up 10-15% from 3.05 billion baht in the fiscal year 2020.
"Key strategies are active asset management and acquisition growth," he said. "We will seek tenants whose business is on the rise like in medicines, medical supplies and e-commerce. The latter grows over 10% per year."
He said these kinds of rising star businesses are looking to expand production and warehousing. For an e-commerce business, FTREIT will introduce its properties in the Bang Na area where it has 13 factories and 55 warehouses.
For businesses dealing with medicines and medical supplies, its properties both in Bang Na and Wang Noi of Ayutthaya which have 139 factories and 25 warehouses, will be offered.
As of March 31, it has a total of 337 factories and 299 warehouses in three zones, comprising northern Bangkok, Ayutthaya and Pathum Thani, eastern Bangkok or Bang Na and Prachin Buri, and the three Eastern Economic Corridor (EEC) provinces.
The majority or 59% of the portfolio were in EEC, followed by northern Bangkok (23%), eastern Bangkok and Prachin Buri (18%). About 72% were freehold and 28% leasehold.
The combined net leasable area totalled around 2 million square metres. It is the largest leasable industrial REIT worth 44.13 billion baht with an average occupancy rate of 86.3% between Jan-March 2021.
"Despite the second and third wave of Covid-19, production recovered to a level close to pre-pandemic, driven by the automotive industry," he said. "The export markets for cars were countries with good virus management like the US and Australia."
For the logistics business, warehouse demand grew after a shortage of containers.
The demand for warehouses to store items caused the occupancy rate of its logistics business in Jan-March 2021 to rise by 2.3% to 86.3% quarter-on-quarter or from Oct-Dec 2020.
The company is planning to invest around 2 billion baht in order to acquire assets from Frasers Property Thailand Plc, the major shareholder and other sponsors.