Listed developers gear up for final-quarter push
LISTED PROPERTY firms are planning to launch new residential projects in the remainder of 2017 even as their financial results show mixed success for the year so far.
Topping the financial results among listed property first at the end of the third quarter is Land and Houses Plc, with a high net profit Bt8.5 billion, up 28.78 per cent from the same period of last year. Using another yardstick, Origin Property Plc reported net profit of Bt966.74 million for the first nine months of this year, up 200 per cent from the
same period of last year.
Pruksa Holding Plc ranks second most profitable with a reported net profit of Bt3.71 billion in the first nine months of this year, but for the first time since floods hit the company hard in the year 2011, its net profit dropped 6.78 per cent from the same period of last year (for other results see graphic).
Despite the industry’s overall mixed financial results for the nine months, all of the listed property firms continue planning to launch new residential projects in the remainder of this year, expressing confidence that demand for residential property would recover.
For example, SC Asset Corporation Plc has plans to debut five projects with a combined value of more than Bt8.2 billion by year’s end.
“Although our net profit in the first nine month of this year was only Bt703 million, we have a sales backlog of Bt9.8 billion at this time, 30 per cent of our total, that will transfer to our customers in the rest of this year, and that will drive our total revenue and net profit growth in the rest of this year,” said CEO Nuttaphong Kunakornwong in a press release yesterday.
Origin Property Plc’s CEO Peerapong Jaroon-Ek said that the company is planning to launch two new projects worth Bt1.2 billion in the rest of this year, after having already launched four new condominium projects worth Bt7.4 billion in the third quarter.
The company had strong growth in net profits over the first nine months due to six condominium project launched over the past two years and transferred to those customers this year, said Peerapong. Origin is also “booking special profit” from their joint venture with Nomura Real Estate Development Co Ltd, he added.
“We are also confident our total revenue and net profit in the rest of this year will have continued growth,” he said.
AP (Thailand) Plc is also planning to launch five new single detached house projects worth Bt7.7 billion for the rest of this year after seeing strong demand in the market, said Pamorn Prasertsan, the company’s chief for the single detached home and townhouse business group.
Sansiri Plc’s chief financial officer, Wanchak Buranasiri, said that the company is planning for the launch of four new residential projects worth Bt2.8 billion in the rest of this year. They are a part of the plan for 11 new residential projects worth Bt26 billion in the fourth quarter of this year. Sansiri expects the four projects will drive total revenue to Bt34 billion by year’s end, after the company showed total revenues of Bt23.19 billion and Bt2.04 billion in net profit for the first nine months.
Pruksa Real Estate Plc’s chief executive officer Piya Prayong said seven residential projects at Eastern Economic Corridor area worth Bt5.5 billion would be launched in the remainder of 2017. These seven projects are among the 35 residential projects worth Bt39 billion that have been rolled out beginning in the second half of this year.
“We are confident the property market in the rest of this year will drive total revenue to achieve our target of Bt50.2 billion at the end of this year, after the company reported total revenue of Bt38.06 billion, or up 9.8 per cent from the same period of last year,” Piya said.