Language  :  
thai english
EMAILPRINT

News

Raimon Land profits more than double on transfers from The River. CEO announces new project in Bangkok: 'The Lofts Ekkamai' and aggressive land acquisition strategy

Nov 20, 2012

Bangkok, 20th November 2012 - Raimon Land PLC (‘Raimon Land’ or the ‘Company’) announces its sales performance, backlog status and financial results for the third quarter of 2012.

Raimon Land reported its highest ever Earnings before interest, tax, depreciation and amortization (‘EBITDA’) during the third quarter of 2012. Both EBITDA and Net Profit After Tax doubled from the previous quarter to Bt 470 million and Bt 262 million respectively. The increase in profitability was mainly the result of further transfers at The River project in Bangkok. Total revenues in the quarter reached Bt 2 billion.

Mr. Hubert Viriot, Chief Executive of Raimon Land commented:

“Raimon Land’s recent efforts are now feeding through to the bottom line, with record levels of profitability achieved in the last quarter. But this is just the beginning. Our current five projects have total sales value of more than 35 billion baht, of which over 70% has already been signed up by customers. With only around 7 billion baht recognized to date in our accounts from these projects, our profit outlook is exceptionally strong.

Looked at in dollar cashflow terms, just on existing projects, we are due to collect well over 700 million dollars over the next few years, of which over 400 million dollars is already secured under contract.”

For more information on the Company’s financial results please refer to Annex I.

Mr. Viriot continued:

“But we are not just sitting on our existing projects and waiting for the cashflows. We have an aggressive new launch strategy targeting luxury, high-end and middle segments of the market.

While our new launches in 2012 have been focused mainly on Pattaya, by January next year we will launch a new 2 billion baht Bangkok project under The Lofts Brand. We have acquired two rai of freehold land in the Sukhumvit-Ekkamai area and will be developing over 250 units there at an average selling price of around 7.5 million baht per unit. Prices will start at around 3.9 million baht. With close proximity to a BTS station and the fashionable Ekkamai and Thonglor districts, we anticipate strong demand. We expect completion of ‘The Lofts Ekkamai’ by 2015.

We are working towards several new projects in central Bangkok, likely to be multi-branded and multi-phased. We have two potential land sites under negotiation with potential sale value of upto 10 billion baht and completion scheduled between 2016 and 2018”

Raimon Land currently has five projects (not including The Lofts Ekkamai) at various stages of development with a total sales value of Bt 35.2 billion (equivalent to over US$1,150 million). Although secured sales contracts at these projects were worth Bt 25.5 billion (or approximately US$835 million) at the end of September 2012, due to Thai accounting rules only around Bt 7.2 billion had so far been recognized as revenues in the Company’s accounts.

Raimon Land’s total secured sales backlog therefore reached approximately Bt 18.4 billion during the third quarter of 2012. Almost half of the backlog related to sales at The River project, while over one-third had been generated by sales at 185 Rajadamri, together Raimon Land’s ultra-luxury flagship projects in Bangkok.

Transfers at The River project commenced in June this year. Sales to the end of September 2012 at The River represented 80% of the project’s total saleable area, equivalent to Bt 12 billion in sales value.

The Company also reported strong sales progress at the 185 Rajadamri project during the last quarter, with 71% of its saleable area now contracted. The 185 Rajadamri project is due for completion and transfers by the end of next year. Construction of the superstructure has now reached the 24th floor and topping off is expected within December this year. At an average Bt 250,000 per square metre, 185 Rajadamri is the highest priced condominium project in Bangkok.

Raimon Land’s Pattaya projects have also made rapid progress. The first building of the Zire Wongamat project is sold out. Northpoint, Zire Wongamat and Unixx South Pattaya were 89%, 71% and 29% sold respectively by the end of September. The Zire Wongamat and Unixx South Pattaya projects, both launched last year are due for completion and transfers in 2014 and 2015 respectively.

For more details on the Company’s sales progress, please see Annex II.

NOTICE OF ANALYST PRESENTATION

Raimon Land will present its results to investors and analysts at 10 am on Tuesday 20th November 2012 at the The Residence (Room 304), The Hyatt Erawan. For more information or an invitation please contact Pravena: (Pravena@awrlloyd.com)

ANNEX I
RAIMON LAND CONSOLIDATED FINANCIAL RESULTS Q3 2012 (SUMMARY)

Bt million

Q3 12
Q3 11

% change

Sales
1,963
245
+701%
Total Revenues
2,000
264
+658%
EBITDA*
470
(5)
N/A
Net Profit After Interest and Tax
262
(23)
N/A

Net earnings (after minorities)

262
(23)
N/A
Earnings per share
0.07
(0.01)
N/A
 

Bt Million
Q3 12
YE 2011

% change

Total Assets
15,753
15,299
+3%
Cash and cash equivalent
1,328
662
+101%

Short Term Debt (interest-bearing)

4,361**
45
N/A

Long Term Debt (interest-bearing)

2,429
6,592
-63%
Shareholder’s Equity
1,353
603
+124%
 

*Earnings before interest tax depreciation and amortization
**Increase was due to reclassification for long-term debt to short-term debt as The River project became due for transfers

ANNEX II
RAIMON LAND PROJECT SALES PERFORMANCE STATUS AT END Q3 2012

Project
 

The River

185 Rajadamri

Northpoint

Zire Wongamat

Unixx South Pattaya

TOTAL
Location
Bangkok
Bangkok
Pattaya
Pattaya
Pattaya
Project value
Bt billions
Bt 14.95 bn
Bt 9.60 bn
Bt 4.85 bn
Bt 2.80 bn
Bt 2.95 bn
Bt 35.2 bn
Units
Number
838
268
376
480
1,200
3,162
Saleable area
m2
104,000
38,000
40,133
28,500
46,155
256,788
Target average price
Bt per m2
Bt 145 k
Bt 250 k
Bt 125 k
Bt 100 k
Bt 65 k

Saleable area contracted

%
80%
71%
89%
71%
29%
Sales value contracted
Bt billions
Bt 12.0 bn
Bt 6.3 bn
Bt 4.3 bn
Bt 1.9 bn
Bt 1.0 bn
Bt 25.5 bn
Project value recognized as revenue*
%
20%
0%
86%
0%
0%
Bt billions
Bt 3.0 bn
Bt 0.0 bn
Bt 4.2 bn
Bt 0.0 bn
Bt 0.0 bn
Bt 7.2 bn
Backlog
Bt billions
Bt 9.0 bn
Bt 6.3 bn
Bt 0.2 bn
Bt 1.9 bn
Bt 1.0 bn
Bt 18.4 bn
Project value received
%
42%
23%
87%
12%
6%
Bt billions
Bt 6.3 bn
Bt 2.2 bn
Bt 4.2 bn
Bt 0.3 bn
Bt 0.2 bn
Bt 13.2 bn
Construction**
%
Completed
37%
Completed
17%
2%
 

*Recognized sales / total project value
**Completed cost / total development cost

Keep this news in your social bookmark: