Bangkok – CPNREIT 2022 financial performance significantly improved from the previous year as traffic recovered from Covid-19 period with total revenues of THB 4.887 mn, +39%yoy and 2022 distribution to trust unitholders at THB 1.1369 per unit, +113%yoy

Mrs. Pattamika Pongsurayamas, CEO of CPN REIT Management Co., Ltd., the REIT Manager of CPN Retail Growth Leasehold REIT (“CPNREIT”) reported CPNREIT’s 2022 financial results improved significantly from the previous year after two years impact from COVID-19 pandemic with total revenues of THB 4,887 mn, a jump of 39%yoy and distribution to trust unitholders at THB 1.1369 per unit, a significant increase of 113%yoy.  CPNREIT performance continued to recover in every quarter in 2022, with the average occupancy of shopping malls and offices remained high at 92.5%. Overall footfall traffic improved 40%yoy which led to continued improvement in rental discounts to shopping mall tenants that almost recovered to pre-Covid level at the end of the year.  The significant reduction of average rental discount in 2022 (14% vs 2021 of 37%) was the main driver for 53%yoy improvement in revenues from shopping malls business. Revenues from the office business increased by 11%yoy from higher occupancy rate, and revenues from hotel business grew by 343%yoy following the recovery of tourism sector from both local and foreign tourists. The operational performance already normalized in December 2022 thanks to improved domestic spending and the year-end festive campaigns at shopping malls that boosted traffic and tenants’ sales. With continued recovery in performance, CPNREIT will be able to maintain strong financial position and stable cash flows to operate the business.

The REIT Manager’s priority for 2023 would be the lease renewal of Central Pinklao and the adjustment of lease payment term of the lease renewal of Central Rama 2, which should be concluded prior to the investment in additional assets. The REIT manager is in the process of considering the structure and appropriate funding sources that would minimize fund raising for the lease renewal and therefore lead to optimal return to unitholders of CPNREIT.  Transaction details should be disclosed and proposed to trust unitholders for approval in 2Q23.

Regarding the investment in additional assets, the REIT Manager will proceed with the investment at the right time and valuation even if this means delaying the transaction beyond 2023.  The REIT manager is considering investment into shopping malls under Central Pattana pcl., that has good potential and solid performance, and does not limit the consideration only on Central Surat and Cenral Ubon, which was approved by the Extraordinary General Meeting No. 1/2019. However, the investment into other asset types i.e. office buildings or hotels will not be in the scope of this transaction.

The REIT Manager continues to follow the investment policy of CPNREIT to create stable and continuous growth in long-term return to unitholders with appropriate capital structure management.

Ms. Naparat Sriwanvit, Chief Financial Officer and Senior Executive Vice President, Finance, Accounting and Risk Management of Central Pattana plc, which is the Sponsor, the major trust unitholder (30%), and the Property Manager of CPNREIT said CPNREIT continued to be the important part of Central Pattana. Therefore, Central Pattana continued to support CPNREIT to ensure stable appropriate long-term returns to unitholders. As the unitholder and property manager, it is in Central Pattana’s best interest to continue to improve performance of assets under CPNREIT with appropriate asset enhancement plan as well as providing appropriate investment opportunity so that CPNREIT can deliver sustainable revenues growth. Central Pattana will also work with CPNREIT to identify optimal investment structure and providing support during capital raising. 

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