Mr. Lionel Lee, Chief Executive Officer of Raimon Land Public Company Limited (“the Company”), Thailand’s leading developer of luxury real estate, announced a year of steady returns with net profit of THB 59.9 million for FY2019, representing a 1,896.6 percent year-on-year growth. Total revenue grew 8.9 percent over the previous year to THB 3,624.2 million. The Company has a total backlog of THB 8,010.5 million by the end of 2019 and the Board of Directors have proposed a dividend of THB 0.015 per share to be distributed on 29 May 2020.

The Company recognised revenues of THB 3,624.2 million for FY2019, up 8.9 percent when compared to FY2018 revenue of THB 3,326.9 million. Net profit came in at THB 59.9 million, up 1,896.6 percent over the same period last year which was THB 3.0 million.

The growth is a result of revenue streams from the transfers of condominium projects, including The Lofts Asoke, The Diplomat 39 and The Lofts Silom which arrived at ready-to-transfer completion status last December, along with income from 9 property development projects. The Company also recognised revenue from its recurring income portfolio, including the food and beverage arm which contributed  45.1 million; and revenues of THB 320.1 million from rental and services, marketing fees, property administration, guarantee fees and interest.

For the operational results of Q4 2019, the company achieved total revenue of THB 557.5 million, mainly through contributions from three projects including The Lofts Asoke, The Diplomat Sathorn and The Lofts Silom. However, due to revenue transfers for certain projects, including The Lofts Silom that only commenced in December 2019, the revenue forecast of Q4 2019 was expectedly revised down as a majority of these revenue will only be recognised in FY2020. The Company’s gross profit for Q4 2019 stood at 29.4 percent, up from 25.4 percent in the same quarter last year. The net loss of THB 129 million this quarter was a result of the company’s ongoing business expansion plans, which included sales and management costs for feasibility studies of new projects.

Meanwhile, the gross profit and the gross profit margin in 2019 increased when compared to last year, as 2018 had 43.1 percent of its revenue that had included the sale of projects with special discounts and low gross profit margins. This included the UNIXX South Pattaya, which was offered at discounted rates in order to close deals as it had been a ready-to-transfer property since 2015, and was targeted at a non-core customer group and location. The Diplomat 39 and The Diplomat Sathorn also saw low gross profit margin contribution as the acquired projects were sold to provide immediate revenue stream to minimize the risks in the construction process.

As at 31 December 2019, the Company has a backlog worth THB 8,010.5 million from 7 projects, including Tait12, The Lofts Silom, The Estelle Phrom Phong, The Lofts Ratchathewi, The Lofts Asoke, The Diplomat 39 and UNIXX South Pattaya.

The Company’s Board of Directors have proposed a dividend payout from retained earnings at THB 0.015 per share for this fiscal year ending on 31 December 2019, totaling THB 62.6 million. The dividend payout will be distributed to shareholders who are listed in the registration book of eligible shareholders (Record Date) on 13 May 2020, while the payout will be transferred on 29 May 2020. The final decision will be approved at the Annual General Meeting of shareholders of 2020 on 30 April 2020.

The various macroeconomic uncertainties of 2019 have unfortunately spilled over into 2020. While there are signs that the US-China trade war is easing, the region and the world has been confronted with a new threat from Covid-19 and the resulting health, trade, and international risks it has created. The Company is monitoring the situation closely, and have put in place plans and risk mitigation strategies to limit the impact from Covid-19.

In addition, the Monetary Policy Committee of the Bank of Thailand had announced decreases on the policy interest rate for three times since August 2019, from 1.75 percent down to 1.00 percent per year in February 2020, which is considered the lowest on record. The Company views this as a positive development for the real estate sector as it lowers the costs of borrowing for both developers and buyers.

Despite the expected overall economic slowdown, the Company remains optimistic that its residential projects will continue to attract demand from certain segments of the market for both long-term investment and discerning live-and-stay buyers. The Company will also continue to execute its diversification strategy into its recurring income segment to build a steady, resilient stream of income.