TLGF sees income growth in Q1 with return of 0.1945 baht/unit
18 July 2013 – Bangkok, Tesco Lotus Retail Growth Freehold and Leasehold Property Fund (TLGF) announced income and net profit growth in Q1 2013/2014 thanks to growth in variable rent. Total income was 620,161,082 baht, increasing by 6% when compared to Q4 2012/2013, or increasing by 76% when compared to Q1 2012/2013. The fund’s net profit was 416,219,070 baht, increasing by 1% when compared to Q4 2012/2013, or increasing by 75% when compared to Q1 2012/2013. We note that the high growth over the same period of last year was because of a different basis. TLGF had 17 properties in the fund in Q1 2012/13 while it has 22 properties currently. Moreover, TLGF was established on 13 March 2012 so it does not fully recognize revenue and expenses of the whole first quarter of last year.
TLGF will pay dividend of the first quarter 2013/2014 at 0.1778 baht/ unit on 15 August 2013 and will pay capital reduction of 0.0167 baht/unit on 16 August 2013. The total return for Q1 2013/2014 will be 0.1945 baht/unit.
Somchai Boonnamsiri, CEO of Krung Thai Asset Management PCL (KTAM), TLGF fund manager, said, “2013/2014 first quarter result of TLGF reflected good performance of the 22 malls in the fund. The fundamentals of the fund remain strong with steadily growing rentals from leading tenants.”
Sompong Rungnirattisai, Property Director of Tesco Lotus said “TLGF’s continued good performance was mainly because of growth in variable rent of Q1 2013/2014. Occupancy rate of TLGF’s 22 malls remained almost full at 99.44%.”
Somchai Boonnamsiri concluded that “TLGF still offers stable returns, making TLGF a good investment alternative. Total return of last year was 0.69 baht/ unit and the fund continues to pay good returns to unitholders with 100% payout ratio in this quarter.”
Tesco Lotus Retail Growth Freehold and Leasehold Property Fund invested in 22 Tesco Lotus hypermarket-anchored shopping malls in prime locations across Thailand, including Bangkok, major cities in upcountry, and tourist destinations. Currently, TLGF is the largest property fund in Thailand with a market capitalization of over 31 billion baht.