Raimon Land Reports Positive Profit in Q1/2017
- The Lofts Asoke has achieved a strong pre-sales of 63% amid the overall slowdown in real estate market
- Record 20th consecutive quarter of profit
- Continues with positive gross and net profit margin of 29% and 10% respectively for Q1/2017
- Net Interest-bearing debt to equity ratio stands at 0.25x
Bangkok, 15 May 2017 –, Thailand’s leading high-end real estate company, Raimon Land Public Company Limited (the “Company”) has recognized another good quarter with net profit of THB 101 million for Q1/2017.
The Company recognized revenues of THB 1,093 million for Q1/2017. The Company’s EBITDA and net profit for Q1/2017 were THB 176 million and THB 101 million, respectively.
Company’s shareholders’ equity has increased from THB 5,108 million at the end of 2016 to THB 5,209 million as of 31 March 2017, as a result of steady recognition of net profits.
Strong operating cash flow has strengthened the Company’s balance sheet resulting in net-interest bearing debt to equity ratio now standing at 0.25x, a reduction from 0.35x at the end of FY 2016.
As of 31 March 2017, the Company now has backlog to be recognized as revenues of THB 3.35 billion. The Company expects pre-sales and backlog to be further solidified from our existing and future projects.
As of 12 May 2017, the Company has a market cap of THB 4,505 million with P/E of 5.30x and P/BV of 0.88x. As of FY 2016, our ROA and ROE were 11.9% and 17.8% respectively.
Transfer at The Lofts Ekkamai
The Lofts Ekkamai, the third consecutive development of The Lofts’ series in industrial-chic style concept, has already completed and started the transfers. As of Q1/2017, The Lofts Ekkamai is 99% sold with only 4 units left out of a total of 263. About 71%, in terms of value, has been transferred to customers as of Q1/2017.
The Lofts Ekkamai has been well received by both local and international clients, leading to more than 99% sold, thanks to the simple Loft concept of style, comfort and convenience in a prime urban setting.
On target for The Lofts Asoke
The Lofts Asoke, our latest high rise development valued at THB 3.2 billion, has continued to achieve strong sales with 145 units sold as of Q1/2017, bringing pre-sales to 69% and 63% in terms of units and project value respectively. The Lofts Asoke has already finished the piling and has commenced construction of the building.
The Lofts Asoke also received “Frost & Sullivan’s Property Development Product Leadership Award” in 2016 as a recognition of the outstanding factors for its product leadership; Design, Location, Exclusivity, and Quality.
Existing Project Updates
In Bangkok, Raimon Land’s track record and performance continues to be one of the strongest in Thailand’s high-end market. Both 185 Rajadamri and River have been more than 90% sold and transferred, reflecting the company’s strength in the high-end sector. The Lofts Ekkamai has been 97% sold in terms of project value with only 4 units left.
The construction of Mews Yen Akat housing estate by Raimon Land is already completed. The Company has started the full sales and marketing campaign which we expect good response from buyers.
In Pattaya, in terms of project value, sales and transfers at Zire Wongamat are now about 90% and 85% respectively, while sales and transfers at UNIXX is around 68% and 59% respectively.
Our overall transfer failure rate continues to be low at less than 1%.
During Q2/2017, Raimon Land will launch one luxury high-rise residential project in Silom area called “The Lofts Silom” with project value of approximately THB 3.2 billion.
Besides The Lofts Silom, the Company will launch one luxury single detached house (SDH) project with around 20-25 units in Sathorn area. The project value will be approximately THB 1.1 billion.
In addition, the Company will launch our first full scale mixed-use commercial project in prime CBD location - Ploenchit, with an aim to diversify our asset portfolio and generate more recurring income. The project will be Grade A leading commercial building with LEED Gold standard.
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