Central Pattana continues to drive towards sustainable economy and announces total Q2 2022 revenue of 9,151 million baht – up 13%

Central Pattana continues to drive towards sustainable economy and announces total Q2 2022 revenue of 9,151 million baht – up 13%

Opening ‘Marché Thonglor’ in Q4/22, ‘Central Westville’ in Q4/23, six residential projects in 2022 and 'Centara Korat' in September 2022.

Central Pattana plc, has announced its Q2 2022 earnings, showing an overall recovery with total revenue of 9,151 million baht, a 13% increase from the previous quarter, and a net profit of 2,753 million baht, an 18% increase from the previous quarter. This resulted from the recovery of retail consumer traffic, which has returned to more than 80% and the rising number of tourist arrivals due to the re-opening of the country. Central Pattana is moving forward with retail-led mixed-use development by continuously investing in four core businesses: shopping centres, residences, office buildings and hotels nationwide. Shopping centres remain the core business that helps push growth in all businesses, with more than 180 projects covering more than 30 provinces across the country in the company's five-year plan, focusing on building a strong sustainable ecosystem, where all stakeholders achieve sustainable growth together to highlight the company's vision of 'Imagining Better Futures for All'.

Ms. Naparat Sriwanvit, Chief Financial Officer and Senior Executive Vice President, Finance, Accounting and Risk Management for Central Pattana plc, said: “The overall company performance for this quarter shows continued recovery, in particular hotels, food courts and housing due to the positive factors from economic recovery in the country. People have resumed their normal lives due to the easing of COVID-19 prevention measures. The re-opening of the country to welcome tourists and tourism stimulus measures from the government have pushed the number of foreign tourists upward to almost triple – from 500,000 visitors in the first quarter to 1.5 million in the second quarter. Customer traffic at our shopping centres has returned to more than 80% of normal (for this period). In addition, the company has applied cost and expense control measures to maintain its profitability.

As for the highlights in the second quarter, the company opened Central Chanthaburi, the ultimate and largest mixed-use project in the East, as planned in May 2022. The feedback on the opening was better than expected as the customer traffic during the launch was 40,000 people per day. In addition, the company will continue to move forward with a five-year investment plan worth 120 billion baht under the strategy of retail-led mixed-use development, with the shopping centre business as the core, supported by residential projects, office buildings and hotels. The company aims to develop more than 180 projects covering more than 30 provinces across the country within five years (2022-2026) as follows:

50 shopping centres in total: expand shopping centres to every neighborhood, city and location nationwide and announce the opening of ‘Central Westville’, with investment of more than 6.2 billion baht, penetrating the Ratchapruek area, which connects directly to Bangkok CBD on an area of 40 rai of land and GFA of 93,000 sqm, aiming to enhance the west of Bangkok to an upper-class lifestyle district – opening in Q4/2023.

17 community malls: expand more thoroughly to cover high-potential locations and the CBD area. ‘Marché Thonglor’ (formerly known as Market Place Thonglor) to be opened in Q4 2022, which will complement Thonglor as the ultimate neighbourhood.

70 residential projects: highlight the strength of Central housing: the projects are located next to Central shopping centres and in the leading mixed-use projects and we also join hands with other projects under the Central Group to become a top developer of quality housing projects covering both horizontal and vertical housing. Recently launched projects include the condominium: ‘PHYLL Phuket’, which is available for reservation now, and six new projects to be launched in 2022: four ESCENT condominiums, one is adjacent to Central Surat Thani and the other three are adjacent to Robinson Lifestyle in three provinces, i.e. Suphan Buri, Chachoengsao and Trang, as well as two detached house projects, Ninya Ratchapruek and Nirati Chiangmai.

37 hotels with a total of 4,000 rooms: covering all segments under three brands: Centara (upscale), Centara One (lifestyle midscale) and Go! Hotel (premium budget). The first hotel 'Centara Korat' will be opened in September 2022 to highlight the success of 'Central Korat', the most comprehensive mixed-use project of Northeast Thailand.

13 office buildings: develop 'The Most Preferred Workplace' for both tenant companies and workers. This year, the main focus is on the renovation of ‘centralwOrld Offices’ and future projects such as Central Park Office (located within the Dusit Central Park project) in order to transform this project into a world-class professional hub in addition to other projects under GLAND in the high potential Rama 9 CBD.

In addition, Central Pattana also co-invested with JWD Store It Co., Ltd. (JWD Store it!), taking a 30% share in an investment of 93.86 million baht to expand into storage rental services to facilitate and meet the increasing demand from both shop owners and tenants, and general customers. Currently, there are six branches with a total service area of 13,000 sqm. This investment is in line with the company's strategy to expand the business to other industries that help strengthen the core business by co-investing with partners with expertise and experience, and industry leaders. This also supports the company's goal of becoming a ‘net zero’ company by 2050 by becoming the first company in Thailand's real estate and retail industry to raise funds through the green bond project, with a three-year green bond equal to 1 billion baht. This is to reinforce our vision of 'Imagining Better Futures for All' and driving towards the future by creating and developing quality spaces while caring for people, communities and the environment to ensure sustainable growth for every party.”

Central Pattana currently operates 38 shopping centres, with a total net leasable area of 2.3 million sqm (16 projects in Bangkok, 21 provincial projects and 1 project in Malaysia), 1 large-scale shopping centre under a joint venture and 17 community malls. It also operates 33 food courts, 10 office buildings, 2 hotels, 22 residential projects, which comprise condominiums under the brands: ESCENT, ESCENT VILLE, ESCENT PARK VILLE, PHYLL and BELLE GRAND RAMA 9 and housing projects under the brands: ESCENT TOWN (townhomes), ESCENT AVENUE (home-office), Ninya Kanlapaphruek (semi-detached houses), Niyam Borommaratchachonnani (luxury detached houses) and a variety of housing projects under the brands: ‘Nirati’ in Chiangrai, Bangna and Don Mueang. There is also a large project co-developed with Dusit Thani plc called ‘Dusit Central Park’, which will be opened in stages in 2023 and 2024.

The company's five-year (2022-2026) business direction is to continue investing in the development of those new projects that have been announced and those yet to be announced. These include mixed-use developments, residential projects and renovation of existing assets to add value as well as managing expenses by reducing costs effectively to maintain financial liquidity and prepare for uncertain situations. The company will continue to study investment opportunities in other forms of business, acquisition and overseas investments in Southeast Asia such as Malaysia and Vietnam as well as studying opportunities in new types of business with high growth potential in order to expand new revenue streams and align with targeted growth for a stable and sustainable future.



Do you like the content of this article?
COMMENT

Singapore proposes new law to tackle harmful online content

Social media sites could be blocked or fined in Singapore if they fail to stop users in the tightly-controlled country from accessing "harmful" content under a proposed law introduced in parliament on Monday.

3 Oct 2022

Calls for more funding as pre-COP27 climate talks open in DR Congo

KINSHASA: Warning "no-one will escape" a worsening crisis, DR Congo led calls on Monday for a surge in funding to brake global heating and fight its impacts at the start of pre-COP27 climate talks in Kinshasa.

3 Oct 2022

Kim Kardashian pays $1.26m for unlawful crypto promo

WASHINGTON: US reality star Kim Kardashian has agreed to pay a $1.26 million fine after unlawfully pushing a cryptocurrency on Instagram without revealing that she was paid to do so, the Securities and Exchange Commission announced Monday.

3 Oct 2022