Frasers Property Thailand Public Company Limited ("FPT"), Thailand's leading integrated real estate platform, announced its operating results for the first quarter of 2022 (January-March 2022), with total revenue of 3,414 million baht. The Company's operating performance improved as it continued to forge ahead with its One Platform strategy - its implementation of a proactive strategy across its integrated platform comprising residential, industrial and commercial businesses, and its emphasis on efficient management. In addition, it benefited from economic recovery in Thailand as people adapt to living with the COVID-19 pandemic.
Mr. Thanapol Sirithanachai, Country Chief Executive Officer of Frasers Property (Thailand) Public Company Limited, said: "At FPT, we started the year by revving up our strong efforts to strengthen our position as a leading integrated real estate player in Thailand. We are creating growth by adjusting strategies and business plans to align with the economic situation, expand our customer base of every business and capture new markets. We also focus on developing innovative products and services to deliver seamless, positive experiences and meet the ever-changing customer demands."
For the first quarter, January-March 2022, FPT was able to achieve satisfactory operating performance as it recorded net revenue of 3,414 million baht and net profit of 311 million baht while its gross profit margin increased by 6.4% Y-o-Y. This is due to adjustments in the strategy of the residential business. FPT has focused more on single houses to capture high buying power customers together with closing deals and transferring home ownership within 3-6 months, enabling it to recognize income faster as well as minimize risk with controllable costs in construction. With high-quality, innovative and outstanding functions, and convenient locations of FPT's houses, its single houses and City Home projects continued to receive warm response despite a rate of loan rejection remains high. During April-December 2022, the Company plans to launch 19 projects worth approximately 30,000 million baht.
Both the industrial and commercial units consistently generated stable income for the Company and recorded total revenue of 571 million baht in the first quarter (January-March 2022).
Factory and warehouse rental remained high at 85.4% and the demand for rental space is likely to continue rising due to the growth of logistics, automotive and electronics businesses. As the war between Russia and Ukraine prolongs, tenants have slowed down exports due to rising oil prices. The Company can consequently benefit from the rising short-term demand for warehouses, which is expected to continue until the end of 2022. Factories and warehouses spanning a total of 150,000 square meters will be completed and handed over within this year as planned.
The occupancy rate of FPT's commercial buildings remained strong at over 90% with a focus on flexible lease agreements and grade A offices for rent in Bangkok's CBD. There has been an increasing number of tenants and visitors at one of Thailand's leading mixed-use projects, Samyan Mitrtown, as people adapt to the pandemic. Meanwhile, Silom Edge, FPT's brand-new mixed-use project is now 80% complete and will open in September 2022. Currently, 60% of its office space accounting for 6,000 square meters was leased out to tenants, and 30% of its retail was already booked. The Company will start to recognize revenue in the third quarter of 2022.