Frasers Property Thailand announces 15,613-million-baht revenue and 1,869-million-baht profit for the year 2021
Frasers Property (Thailand) Public Company Limited (FPT), a leading integrated real estate platform in Thailand, has announced its operating results for the year 2021 (January-December 2021). The Company recorded total revenue of 15,613 million baht and net profit of 1,869 million baht, despite the challenges brought on by the ongoing COVID-19 pandemic, especially in late 2021 when the emergence of the Omicron variant threatened Thailand’s economic recovery. To position for eventual recovery, FPT has prepared a proactive plan to drive business growth in line with its “One Platform” strategy. FPT also aims to expand its customer base across its residential, industrial and commercial businesses.
Mr. Thanapol Sirithanachai, Country Chief Executive Officer of Frasers Property (Thailand) Public Company Limited commented that, “FPT was able to forge ahead steadily and firmly in 2021 despite the pandemic-related headwinds. This attests to our integrated real estate platform capabilities and responsive strategy as well as effective cost control, thanks to which we were able to achieve the target operating results amid operational and macroeconomic uncertainties. In the past year, the Company continued to focus on employee health and safety as well as professional development to enhance performance and preparedness for effective response to an eventual market recovery.”
In 2021, FPT continued to navigate through macroeconomic uncertainties and operational challenges brought on by the COVID-19 pandemic. In the last quarter (October-December 2021), the Company achieved total revenue of 4,043 million baht and net profit of 749 million baht, an increase of 17.4% and 396% Q-o-Q respectively. Gain on capital redemption of investment in associate of 381 million baht contributed substantially to the net profit. As a result, total revenue for the 12-month period (January-December 2021) amounted to 15,613 million baht and net profit amounted to 1,869 million baht. Coupled with the Company’s success at driving synergy across its three asset classes and diversification through its integrated real estate platform, FPT recorded a significant reduction in costs and total expenses.
The severity and persistence of COVID-19, particularly the more transmissible Omicron variant, in the last quarter of 2021 (October-December 2021) hampered marketing efforts. Moreover, persistently high household debt led to a high rate of loan rejections and a decrease in property purchases. In the last 12-month period (January-December 2021), Frasers Property Home (Thailand) recorded total revenue of 11,117 million baht. Partially offsetting the impact of the adverse operating environment were the effective adjustment of its online marketing strategy and the development of its popular single-detached and semi-detached houses, allowed the expansion of its customer base among the middle- and high-income groups.
Frasers Property Industrial (Thailand) and Frasers Property Commercial (Thailand) consistently generate stable income for the Company and recorded revenue of 2,178 million baht in 2021 (January-December). Factory and warehouse rental remained high at 86% and the demand for space for rent is likely to continue rising due to the growth of e-commerce and electronic business. In addition, business operators’ emphasis on diversification to minimise supply chain disruptions and relocation of manufacturing bases into Thailand bring positive impact while the ongoing pandemic leads to a growing demand for short-term warehouse rental. Meanwhile, office buildings for rent remain strong, at over 90%, with emphasis placed on flexible lease agreements and grade A offices for rent in the Bangkok’s CBD.
“In 2022, FPT will continue on its journey towards becoming Thailand’s top integrated real estate brand and developer of innovative products and services that cater to customers’ ever-changing demands,” Mr. Thanapol added. “This year, we are prepared to achieve growth by expanding our customer base in all asset classes.”