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Ananda slashes condo launches from 13 to 4

Ananda Development Plc

Ananda Development Plc

Bt6-bn land purchases planned for 8 projects next year; Bt2.5 bn bond issue in mid-year

Ananda Development Plc has revised down the launch of condominium projects this year from 13 worth Bt30 billion to only four worth Bt15 billion.

The company has also set aside an investment budget worth up to Bt6 billion to buy eight new land plots to develop eight new condominiums worth Bt26 billion next year, the company's president and chief executive Chanond Ruangkritya said.

The company's investment budget will come from its cash flow and the issuance of debentures worth Bt2.5 billion that will be launched mid this year.

Chanond said the company's debt-to-equity ratio of 1.1:1 meant it had more room to burrow from banks.

The company estimates total presales of Bt9 billion and total revenue of Bt9.05 billion this year after posting total revenue of Bt9.22 billion in 2013, which was up 79.6 per cent on 2012.

Chanond said Ananda continued to be concerned about the country's political problems.

"As the political and economic situation is still uncertain, we will begin the year with a cautious plan, although ready to increase if we see signs of a rebound," he said.

He said the company's revenue this year would come from its existing projects.

They include the first Elio project, which is slated to begin transfer in the second quarter, and the second Elio project and Ideo Sathorn-Thapra.

Those two projects are slated to begin transfer in the fourth quarter.

The three projects are part of a total backlog worth Bt19.85 billion, which will generate the company's total revenue till 2016.

Ananda expects to generate a net profit this year after securing a record net profit Bt811.5 million in 2013 following a Bt199 million loss in 2012.

Following the record net profit, the company's board of directors approved to pay shareholders a dividend of Bt0.05 per share that will be paid on May 6.

The company generated a record Bt21.08 billion in presales in 2013, an increase of 138 per cent over 2012.

By achieving Bt21.08 billion in presales, the company exceeded its expectations and demonstrated there was a strong demand for affordable, quality units near mass transit stations.

Of that amount, Bt11.5 billion was generated between September 29th and October 17th, showing what level of sales are achievable when a company offers units to the market.

"Our customers are not showing any sign of financial stress despite the economic slowdown," Chanond said.

"Over 35 per cent pay for their units entirely in cash and the percentage of our customers who were unable to transfer due to failing to get a mortgage was 0.16 per cent for the year."






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