According to CPNREIT’s plan to successfully renew the leases of Central Pinklao and Central Rama 2 projects with a total investment of not more than THB 25,014 million, CPNREIT intends to structure the fundraising scheme to reflect the market sentiment with 60% debt financing and 40% equity financing so as to maintain its sustainable revenue for the unitholders in both the short and long term. Presently, the REIT Manager is implementing the plan approved by the trust unitholders. The filing with The Securities and Exchange Commission (SEC) is expected to be submitted in late 2023 and the capital increase in mid-2024.

On 12 September 2023, TRIS Rating Company Limited (TRIS) has assigned “AA-” rating on CPNREIT, assessing that the financial leverage of CPNREIT is expected to materially increase following the successful renewal of the leasehold rights for Central Pinklao and Central Rama 2 projects during 2024-2025. However, CPNREIT will be able to manage liquidity with its highly predictable cash flows from rental and service income and the prospect of the continued recovery trend of its invested assets in the shopping center and hotel business. CPNREIT is expected to generate revenue of THB 5-6 billion per annum and EBITDA of THB 4-4.5 billion per annum in 2023-2025. This reflects CPNREIT’s high quality shopping centers and hotel as well as predictable cash flow from rental and service income.

The above credit rating results with “negative” outlook are as expected for CPNREIT. The financial leverage after the lease renewals to total assets remains at the level where CPNREIT can still service debts and manage finance costs to match with operating cash flows and lease maturity. This is the result of prudent financial policies and maintaining a strong financial profile to create continuously sustainable and stable growth.

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