News
GVREIT maintains stable portfolio and credit rating for Q4/24, declares dividend of THB 0.1998 per trust unit
BANGKOK, 28 NOVEMBER 2024
Frasers Property Commercial Asset Management (Thailand) Company Limited or "FPCAMT", as the REIT Manager of Golden Ventures Leasehold Real Estate Investment Trust or "GVREIT", has announced the trust's operational results for the fourth quarter of fiscal year 2024 (July - September 2024). Total revenue reached THB 284.29 million, a slight decrease of 0.64%, compared to the previous quarter. GVREIT will pay a quarterly distribution at THB 0.1998 per trust unit, totaling THB 162.80 million, scheduled for payment on 25 December 2024
Mr. Thanarat Boonyakosol, Managing Director of Frasers Property Commercial Asset Management (Thailand) Company Limited, said, “Despite growing competition from an increase in new office building supply, the trust maintained robust asset management capabilities. In the fourth quarter of 2024, the trust maintained a high occupancy rate of 90%, an increase from the previous quarter and above market average.”
In the Bangkok office market, the current ‘Flight to Quality’ trend among tenants has gained momentum. The trend favours offices that are of superior quality, focusing on flexibility, technology, and sustainability, with older office buildings facing competition from newer, more adaptable office supply formats. According to Knight Frank, an additional 1.2 million square metres of new office space is projected to enter the market over the next 2.5 years, with the
Silom-Sathorn-Rama 4 area expected to become a prime location for office lettings.
Against this backdrop, GVREIT’s portfolio assets, Park Ventures and Sathorn Square, achieved healthy occupancies of 97% and 87% respectively.
Additionally, the trust maintained its corporate credit rating and issue rating from TRIS Rating at a stable ‘A-’ with a ‘Stable’ outlook. TRIS Rating believes the trust's assets will continue generating reliable cash flow during the forecast period. Despite increased industry risks from projected office oversupply and softening demand, the trust is expected to maintain high occupancy rates and satisfactory rental rates, according to TRIS Rating.
“The trust's high-quality assets in prime locations remain a key strength in maintaining operational performance. The REIT Manager has continuously implemented strategies to address market challenges, such as Asset Enhancement Initiatives (AEI), which help enhance competitiveness of the portfolio and was completed and launched in September. The initiative has received positive feedback from tenants and office occupants, aligning with the trust's intention of developing spaces that address market challenges while maintaining strong operational and financial performance," Mr. Thanarat concluded.
