Central Pattana plc, reported earnings exceeding its target for 2022, achieving earnings to almost the equivalent amount of 2019 (prior to COVID-19). In 2022, the company had total earnings of 37.16 billion baht or a 28% increase from the previous year and a net profit of 10.76 billion baht or a 51% increase from the previous year. Central Pattana is continuing with its five-year investment plan under the strategy of retail-led mixed-use development, comprise of shopping centers, residential projects, office buildings and hotels.
The company is launching new projects this year including Marché Thonglor, the best community mall in Thonglor, which will open in March 2023, and Central Westville, which will uplift the Ratchaphruek area to a high-end lifestyle for western Bangkok, open in 4Q /2023. Moreover, there are new mixed-use projects under construction: Central Nakhon Sawan and Central Nakhon Pathom, which will open around the first and second quarter of 2024.
Naparat Sriwanvit, Chief Financial Officer and Senior Executive Vice President, Finance, Accounting and Risk Management for Central Pattana plc, said:“Our earnings for 2022 have recovered well – on par with 2019 earnings prior to COVID-19, with positive factors from the continuing recovery of the Thai economy. People’s spending improved at the end of the year and there are increasing numbers of tourists in addition to government and private sector support measures to spur spending. Central Pattana organized great year-end campaigns that have created global sensations at Central shopping centers nationwide and helped to attract customer traffic and boost sales for our tenants and partners. Campaigns that delivered happiness to both Thai customers and tourists are such as ‘Embracing Happiness 2023’ in collaboration with our world-class partner: LINE FRIENDS and the ‘Bangkok & Thailand CountdOwn 2023’ event, one of the world’s best countdown entertainment events, known as the ‘Times Square of Asia’. Both of these events received overwhelming feedback; in addition, Central Pattana has applied a cost-effective approach in order to maintain maximum profitability.
Central Pattana has successfully expanded its businesses under the strategy of retail-led mixed-use development in accordance with its plan. The company has launched GO! Hotel Bowin, Chonburi, a premium budget hotel that offers comfort and convenience with standardized services at value-for-money prices as well as fulfilling the needs of all travel needs, with convenient location – adjacent to Robinson Lifestyle.
Central Pattana also launched five residential projects which include high-rise projects: ESCENT VILLE Chachoengsao, Suphan Buri, ESCENT Trang, and two low-rise housing projects: Nirati Chiangmai and Ninya Ratchapruek. In addition, the company has opened ‘at work’ at centralwOrld Offices, a flexible space for work and lifestyle purposes that meets the lifestyle of hybrid work, with comprehensive work facilities and multi-purpose spaces for all types of events such as seminars, workshops, townhalls, art exhibitions and press conferences, etc.
The new projects to be launched this year include Central Westville, and Marché Thonglor (former Market Place Thonglor) a community mall which will be opened in March 2023. There are two new-model mixed-use projects: Central Nakhon Sawan and Central Nakhon Pathom, with a total combined investment of 14 billion baht, and which will open around the first or second quarter of 2024. It is expected that the two projects will help promote new high potential cities and upgrade the quality of life for the locals as well as supporting the growth of our partners. Central Pattana is currently studying assets divestment plan into CPNREIT. The transaction may take place in 2H23 and details will be disclosed at a later stage.
In 2022, Central Pattana highlighted itself as a real estate developer for sustainability, being listed in DJSI World as a global sustainable company for five consecutive years and in DJSI Emerging Markets for nine consecutive years as well as receiving Green Star level in GRESB (Global Real Estate Sustainability Benchmark) in the Management and Development category. GRESB is a globally recognized measure of the sustainability for the real estate sector.
Moreover, the company has also won eight awards for all-round excellence in Asia and at national level covering management, marketing communications, product and service development, project development, human resources management, sustainable development, and energy saving. These awards help to emphasize Central Pattana as a leader in the real estate industry that conducts business with all-round excellence while caring for all stakeholders, communities, society and the environment to ensure sustainable growth alongside us following our vision of ‘Imagining Better Futures for All’.”
Central Pattana is currently managing 39 projects, which includes 37 Central shopping centers (15 in Bangkok and perimeter, 21 in provincial Thailand and one in Malaysia), one Esplanade shopping center and one Mega Bangna (under a joint venture) and 17 community malls, making a net total leasable area of 2.3 million m2. The company also manages 33 food courts, 10 office buildings, 4 hotels and 28 residential projects, which includes condominiums under the brands: ESCENT, ESCENT VILLE, ESCENT PARK VILLE, PHYLL and BELLE GRAND RAMA 9 and low-rise projects under the brands: ESCENT TOWN (townhomes), ESCENT AVENUE (home-offices), NINYA (semi-detached houses), NIYAM (luxury detached houses) and a variety of low-rise projects under the brands NIRATI in Chiangmai, Chiangrai, Bang Na and Don Mueang. In addition, the company has also co-invested with Dusit Thani plc, in the large ‘Dusit Central Park’ project, which will open in stages from 2024.
Central Pattana’s five-year (2022-2026) business direction is to continue investing in the development of new projects that have been announced and projects yet to be announced. These include retail-led mixed-use development, hotel and residential projects, and the renovation of existing assets to add value as well as managing expenses by reducing costs effectively to maintain financial liquidity and prepare for uncertain situations. The company will continue to study investment opportunities in other forms of business, acquisitions and overseas investments in Southeast Asia, such as Malaysia and Vietnam, as well as studying opportunities in new types of business with high growth potential in order to bring in new revenue streams and align with the targeted growth achievement for a stable and sustainable future.
