"NOBLE" outperforms with Q1/2022 pre-sale making a new record more than THB 6,400 million and plans to launch 5 new projects in Q2/2022

Real Estate News Tuesday May 17, 2022 10:49 —PRESS RELEASE LOCAL

Noble Development Plc ("NOBLE") outperforms due to the property recovery with pre-sale in the first quarter of 2022 recording a new record more than THB 6,400 million, closed to full year pre-sale of 2021 at THB 8,035 million. After launching 5 new projects worth over THB 15,000 million early this year, the accumulated backlog increased more than THB 15,400 million. Executive "Mr.Thongchai Busrapan" plans to launch 5 new projects worth THB 12,300 million in this second quarter of this year. Signaling its 2023 revenue will continue to grow to reach THB 15,000 million from the recognition of backlog on hands and plans to launch more new projects.

Mr. Thongchai Busrapan, First Vice Chairman of The Board of Directors and Co-Chief Executive Officer of Noble Development Plc ("NOBLE"), a leading residential developer in prime locations of Greater Bangkok, revealed that the overall property market started to see a clear recovery, given a return of strong consumers' purchasing power after the easing of COVID-19 pandemic. At the same time, the prices of construction materials are in the rising trend, encouraging many potential homebuyers to make a faster decision to buy a house. These factors have also driven the property market in the first quarter of 2022 to grow continuously. This reflects to NOBLE's Q1/2022 pre-sale to exceed THB 6,400 million, increasing 150% YoY and 155% QoQ. This made a new record by quarter for NOBLE and closed to full year pre-sale of 2021 at THB 8,035 million. The new record pre-sale came from the continuing projects in 2021 and 5 newly launched projects in Q1/2022 worth over THB 15,000 million i.e. 1.Nue District R9, 2.Nue Mega Plus Bangna, 3.Nue Z-Square Suan Luang Station, 4.Nue Evo Ari, and 5. Nue Connex Condo Don Mueang. All of these projects have gained good feedback from customer, as reflected in average pre-sale of all projects at 40%-50%.

Besides, the company has a plan to continuously launch new projects in Q2/2022 with 5 projects worth combined THB 12,300 million i.e. 1.Noble Curate, a luxury land plot project, 2.Nue Cross Khu Khot Station Phase 1, a low-rise condominium project, 3.Noble Curve, a townhouse project, 4.Noble Create, a high-rise condominium project, and 5.Noble Cove-North Ratchapruek, a townhouse project. The company launched Noble Curate and Nue Cross Khu Khot Station Phase 1 during April 2022.

Furthermore, NOBLE plans to launch additional 8 projects worth combined THB 20,400 million in the second half of the year, making the full year new projects to reach target at 18 projects worth THB 47,700 million. All these new projects will expand the product portfolio and cover various locations in Bangkok.

"Presently, the real estate market is very strong. The customers are real demand who buy a house for their own use and investors will make a buying decision faster due to the factor from increase price of construction materials. They believe developers will increase selling price in the future to in line with the higher costs, so they decide to buy in this period. To comply with re-opening of the country to welcome foreign tourists who will help drive the economy and income of this country. This is an opportunity to encourage purchasing power from foreigners especially Chinese customer who still have constant inquiries.

However, for Q1/2022 performance, the company recorded total revenue of THB 1,496 million, a decrease 44% YoY. The decrease was mainly from no new completed projects in Q1/2022 compared with new completed projects in Q1/2021. NOBLE realized revenue in Q1/2022 came from mainly 4 projects i.e. 1.Noble BE19 Sukhumvit, 2.Nue Chaeng Wattana, 3.Nue Connex House Don Mueang, and 4.Noble Gable Watcharapol. All these 4 projects are existing projects that have been recognized ownership transfers continually from the end of 2021.

Due to strong of pre-sale in Q1/2022, the company's backlog increase from THB 10,000 million at the end of 2021 to THB 15,400 million in Q1/2022. The backlog will be gradually realized as a revenue in the remainder of this year and in the next 2-3 years. NOBLE believes its 2023 revenue will grow to reach THB 15,000 million from the recognition of backlog on hands and plans to launch more new projects. .

NOBLE Co-CEO added that the investment plan in UK has a revision to adjust the investment format to suit the current situation with flexibility in investment from buying whole building to buying units with a bulk deal, as the purchase of units has low competition and faster than the acquisition of whole building. This will generate higher internal rate of return (IRR) of approximately 20% in line with the Company's main business in Thailand. In 2022, NOBLE aims to acquire assets in UK for 550 units with the investment budget of GBP 100 million (in which NOBLE will invest 45%). In Q1/2022, the Company has already purchased real estate assets of 84 units.

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