CPNREIT posts B1.53bn first-quarter revenue
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CPNREIT posts B1.53bn first-quarter revenue

An exterior view of CPNREIT's Central Pinklao project.
An exterior view of CPNREIT's Central Pinklao project.

CPN Retail Growth Leasehold REIT (CPNREIT) reported 1.53 billion baht in revenue in the first quarter of 2024, an increase of 7.7% year-on-year.

Net profit from investments totalled 1.06 billion baht in the first quarter, an increase of 11.9% year-on-year.

This increase was in line with the ongoing recovery of the retail business as well as the tourism sector, said Pattamika Pongsurayamas, chief executive of CPNREIT Management.

"CPNREIT has shown strong performance in line with the recovery of retail businesses and the corresponding revival of Thai tourism," she said.

"The shopping mall business, comprising seven projects, which are the core business of CPNREIT, has recovered rapidly with outstanding performance results. Overall, the average occupancy rate of shopping malls and office buildings in the first quarter of this year was 93%.

"The average number of customers using the shopping malls has also increased by 8% year-on-year, which reflects an improvement in domestic consumption and tourist spending," she added.

In addition, on April 5, CPNREIT distributed payment to existing trust unitholders prior to the capital raising from the operation period from Jan 1-May 3, at the rate of 0.3618 baht per unit. The payment was made on May 17.

CPNREIT is again the REIT with the largest market capitalisation in Thailand, after the success of capital raising and the lease renewal of Central Pinklao project as planned.

"CPNREIT issued and offered 1.053 billion trust units at the final offering price of 10.20 baht per unit to existing unitholders and the general public during April 23-29.

"It was well received as expected and received a total of 10.7 billion baht. Together with some borrowed funds from financial institutions, these funds were invested in the leasehold rights of Central Pinklao, with a total value of 12.1 billion baht for lease extension for another 15 years from Jan 1, 2025 to Dec 31, 2039," said Ms Pattamika.

This investment will support and continue to enhance CPNREIT's revenue growth in the long term and will also enable CPNREIT to maintain a well-diversified portfolio in terms of its revenue sources and locations of its assets, additionally reinforcing its position as the largest shopping centre and retail REIT in Thailand.

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