CPN profit jumps 45% in Q3

CPN profit jumps 45% in Q3

Central Pattana is the operator of CentralWorld, Bangkok's largest shopping mall complex.
Central Pattana is the operator of CentralWorld, Bangkok's largest shopping mall complex.

Central Pattana (CPN) reported a strong performance in this year's third quarter, thanks to its new strategic plan supporting Thailand's transition towards a low-carbon society.

The country's leading retail and real estate developer posted total earnings of 12.2 billion baht in the third quarter, representing a 31% increase year-on-year. Net profit surged by 45% to 4.16 billion baht year-on-year.

The operator of Central shopping centres plans to open Central Westville, a prototype semi-outdoor and low carbon mall, on Nov 29, stating it would provide a sustainable future for all.

In line with its plans, in the third quarter CPN opened GO! Hotel Si Racha, GO! Hotel Chonburi and mixed-use project Central Ubon, the largest project in the southern Isan region together with Ubon Hall to support the Mice city concept.

Naparat Sriwanvit, chief financial officer of CPN, said the company's solid earnings in the third quarter were also driven by tailwinds from domestic consumption and tourism in line with the increasing number of tourists visiting the country as well as a more competitive edge derived via the company's mixed-used development strategy.

CPN has played a key role in propelling Thailand's economic growth and bolstering the tourism sector, solidifying the country's status as a global destination through the year-end campaign dubbed "The Great Celebration 2024", she said.

CPN Retail Growth Leasehold REIT (CPNREIT), Thailand's largest retail-focused real estate investment trust, which is listed on the Stock Exchange of Thailand, has been rated AA- by Tris Rating, thanks to the trust's prudent financial policies and strong financial profile to create continuously sustainable and stable growth.

CPNREIT announced this year's third quarter distribution of returns at 0.257 baht per unit, equivalent to a 10% yield.

As of September 2023, CPN managed 39 projects in total: 37 shopping centres, comprising 15 located in Bangkok and its environs, 21 projects located in the provinces, and one project located in Malaysia; one Esplanade shopping centre; and one Mega Bangna shopping centre (under a joint venture).

The company also manages 17 community malls with a total net leasable area of 2.3 million square metres.

The company currently manages 33 food courts, 10 office buildings, eight hotels and 30 residential projects including condominiums.

Ms Naparat said CPN not only focuses on sustainability, including the use of clean energy and reducing greenhouse gas emissions during the construction process, but also fosters an environmentally friendly business ecosystem and engages in green activities.

The company also plans to open Central Nakhon Sawan in the first quarter of 2024, Central Nakhon Pathom within the first half of 2024, and Central Krabi in 2025.

Other projects set to open include Centara Ayutthaya Hotel in the fourth quarter this year, Centara One Rayong Hotel next year, and five residential projects (three new detached housing projects and two Escent condominium projects).

In addition, the company has co-invested with Dusit Thani plc in Dusit Central Park, a large mixed-use project which is set to open next year.

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