- Central Pattana continues to invest in mixed-use development projects with big impact, targeting to cover over 30 provinces in five years (2022-2026).
- The company plans to officially open Central Chanthaburi on 26 May
- It focuses on its vision “Imagining Better Futures For All” to create a strong and sustainable ecosystem with care for all stakeholders.
Central Pattana plc. and its subsidiaries (CPN) reported its first quarter performance results, showing a total revenue of 8.07 billion baht and a net profit of around 2.33 billion baht. Under a five-year business plan from 2022 to 2026, the company will invest 120 billion baht in new mixed-use developments and revamps of existing projects across over 30 provinces. About 50 shopping centers will be the core component of its new business format, aimed at catering to new trends and improving lifestyles of neighborhoods and communities around the country. CPN strives to become the country’s top developer. Its shopping center business will be supplemented with high-quality residential projects, office buildings and hotels, to boost the economy and lift quality of life of the people, serving the company’s vision of “Imagining Better Futures For All.”
Ms. Naparat Sriwanvit, Chief Financial Officer and Senior Executive Vice President, Finance, Accounting and Risk Management of CPN, said, “the strong financial performance during 1Q22 was largely attributed to improving circumstances, particularly the relaxation of the COVID-19 situation that helped revenue and profits recovered from the prior year. In 1Q22, the company successfully maintained its average occupancy rate across its retail portfolio at 91%. At the same time, the government had relaxed its COVID-19 pandemic control and implemented various measures to boost the economy and tourism, such as the half-half co-payment scheme, the Shop Dee Mee Kuen scheme, the 4th We Travel Together project, and Test & Go project, resulting in more domestic spending and travel as well as a return of foreign tourists. Despite the strong recovery, the outlook remains challenging as slow economic growth, tourism recovery hit from the geopolitical situation between Russia and Ukraine, and rising inflation and interest rates are expected to curtail the recovery momentum. Hence, the company continues to put utmost importance in managing and adapting its business strategies according to changing circumstances, emphasize on effective cost management and maintain robust capital structure as it has always demonstrated in the past”
For first quarter performance, the company shows a total revenue of 8.07 billion baht and a net profit of around 2.33 billion baht, decrease by 15% and 39% from the same period in the prior year (YoY) respectively. Excluding non-recurring items and impact from the financial reporting standards, total revenue and net profit would increase by 23% and 72% YoY respectively and in-line with the improving situation of its businesses.
In the first quarter this year, under its President and CEO, Ms. Wallaya Chirathivat, CPN announced its new vision of “Imaging Better Futures For All” aimed at creating a strong sustainable ecosystem by creating synergy of all involved parties, partners, communities and mixed-use projects to upgrade quality of life of the people and expand its business led by retail development. Furthermore, the company will invest 450 million baht this year and has set up a “business & digital transformation” task force to transform its operation into an omnichannel platform that connects all businesses in its ecosystem under a B2B2C format, which will create new experiences for customers and new standards for places of better futures. Additionally, each of CPN’s projects will pay special attention to two aspects, which are green & energy and health & wellness, under a goal to create sustainable lifestyle for all. As for the corporate, it will strive to offer opportunities to relevant parties in order to develop people, cities and the country, while leading Thailand’s real estate and retail industries to the global stage for better futures for all.
CPN currently operates 36 shopping centers with a total retail space of 1.9 million square meters, consisting 15 shopping centers in Bangkok and peripheral areas, 20 in other provinces and one in Malaysia, one joint venture shopping center and 18 community malls. In addition, it manages 32 food centers, 10 office buildings and two hotels. The company also manages 22 residential projects, including condominiums under the brands ESCENT, ESCENT VILLE, ESCENT PARK VILLE, PHYLL, and BELLE GRAND RAMA 9, horizontal projects under the brands ESCENT TOWN for townhomes, ESCENT AVENUE for home offices, NINYA KALLAPPHRUEK for twin homes, NIYHAM BOROMRATCHACHONNANI for luxury single homes and NIRATI for various residential types in Chiang Rai, Bang Na and Don Mueang.
CPN expects to officially open the new Central Chanthaburi on 26 May this year and Central WestVille in the fourth quarter of 2023. The latter development will connect Ratchaphruek area to Bangkok CBD. It is also developing Dusit Central Park jointly with Dusit Thani Plc. and plans to gradually open parts of this huge project in 2023 and 2024.
As for the five-year business plan from 2022 to 2026, the company has adjusted its investment and development plans for a number of announced and unannounced projects, including mixed-use developments, residential projects and other assets in order to increase value, increase efficiency in cost management and maintain liquidity to prepare for potential uncertainties. The company is also studying feasibility and opportunities to invest in other businesses, acquisitions and overseas projects in Southeast Asian countries such as Malaysia and Vietnam. It is looking to diversify to new business with high growth potential in order to generate new sources of revenue and strengthen its growth and secure sustainability.