Bangkok--20 Nov--Central Pattana
Central Pattana Public Company Limited (CPN) reported third quarter operating profit of 698.9 MB an increase of 6.9% q-o-q. The increase was attributed to rental and service income, which saw a growth of 9.3% q-o-q to 1,625.1 MB. Some of the contributing factors to this growth came from the reopening of CentralWorld, CPN’s largest shopping complex, which partially opened in July 21, increase in service income due to the new rate adjustment applied in August and increase in office revenue from the higher take up rates achieved at The Offices at CentralWorld and Central Pinklao Tower B.
Comparing net profit y-o-y, CPN reported a drop of 80.1% to 431.7 MB, due mainly to two non-recurring items that were included in 3rd quarter 2005. These items included a gain for the financial lease of the partial areas of Central Plaza Rama 2 and Central Plaza Ratchada-Rama 3 to Central Pattana Retail Growth Fund (CPNRF) and a write-off (non-cash) as a result of impairment of assets under development. Excluding the gain from the lease, write-off and other related items (Tax of 708.0MB from gain and write-off and 113.9MB of minority interest on the impairment of assets under development) net profit for 3rd quarter 2006 would have been 5.9% higher y-o-y due mainly to increases in total revenue, property management fee and equity income from CPNRF.
Total revenue registered 1,717.6 MB, an increase of 2.6% y-o-y even after the exclusion of Central Plaza Rama 2 and Central Plaza Ratchada-Rama 3 in third quarter 2006 since it was leased to CPNRF in August 2005. The growth came from continuous increases in rental rates which were achieved at all of the properties, full contribution of additional leasable area at Central Town Rattanathibet after relaunching in September 2005, new office space at Pinklao Tower B after opening in March 2006 and increased common area and air-conditioning service income after rate adjustment in August 2006.
On CPN’s operational front, CentralWorld, Southeast Asia’s largest lifestyle shopping center, had its soft opening for expansion phase on July 21st and a celebration party on August 18 2006. The newly open phase of CentralWorld’s includes a leasable area of 145,977sqm in which occupancy rate at the end of 3rd quarter 2006 stood at 65%. CPN expects occupancy to increase rapidly in the 4th quarter since it has already achieved sales progress of 94%. The rest of the area, which is currently under renovation and will be launched by mid-December 2006, includes leasable area of 40,000sqm and sales progress at the end of 3rd quarter is at 84%.
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