IR-Newsletter
Investor Newsletter FY 2016/2017
IMPACT Growth Real Estate Investment Trust
REIT Key Factsheet (End of June 2016) Unit Price : 14.60 THB NAV : 10.8162 Number of Unit : 1,482,500,000 Units Market Cap : 21.644 billion THB
1 OVERVIEW 1.1 Revenue & Expense 3 Months performance for the period of April-June 2016 IMPACT Growth Real Estate Investment Trust (IMPACT Growth REIT) has reported the 2016/2017 first quarter performance (April-June 2016) with total revenue 487.72 million THB, which are from 486.40 million THB service incomes, interest income 0.23 million THB, 1.10 million THB other income, totally brings 253.14 million THB net profit or a 52 percent net profit margin, in line with its 2016 target around 50-55 percent. 486.40 million THB service incomes: • 82 percent Venue Sale • 7 percent F&B Right Fee, Long Term Rent • 3 percent Parking • 1 percent Media Right Fee
F&B Right Fee
Revenue Structure for first quarter of 2016 (April-June 2016) Parking
Media Right Fee
82%
Venue Sale
7% 3% 1%
7% Long Term Rent
IR-Newsletter
Investor Newsletter FY 2016/2017
IMPACT Growth Real Estate Investment Trust The IMPACT Challenger is the key revenue driver for this quarter, with the highest rate of occupancy rate at 55 percent because some events move from IMPACT Exhibition Hall 1-8 into IMPACT Challenger such as Smart SME Expo, Amway and OTOP Midyear 2016. In terms of IMPACT Growth REIT’s expense comprises cost of service and administration expense, 68.72 million THB cost of service, mainly in 51 percent of utilities meanwhile administration expense at 49.28 million THB which comes from utility (38 percent), security service and cleaning service (41 percent) respectively. As a result, REIT’s net investment income at 251.70 million THB as 86 percent gross profit margin and reported total realized and unrealized gains on investment at 1.44 million THB, thus the REIT’s increase in net assets from operation of 253.14 million THB with 52 percent net profit margin.
51% Service Cost (Equipment + Sound + Casual)
Utility Cost
10%
Cost of Service’s Structure for first quarter of 2016 (April-June 2016)
Security, Cleaning, Laundry
22% Other Costs
13% 4%
Property Tax
1.2 Balance Sheet At the end of June 2016, The REIT reported investments in properties in fair value of 19,619 million THB, investments in securities (Fixed Income Fund) of 401.58 million THB, cash and cash at banks of 236.93 million THB, the REIT reported total assets of 20,412.12 million THB, The REIT reported long term loan from Financial Institution and Life Insurance in the amount of 3,894 million THB, the REIT’s total liabilities at 4,377 million THB. As a result, the REIT has its net asset of 16,035.13 million THB or 10.8162 THB in net asset value per unit, slightly decrease from the end of March 2016 as 16,108.10 million THB in net asset or 10.8655 THB.
IR-Newsletter
Investor Newsletter FY 2016/2017
IMPACT Growth Real Estate Investment Trust
2 DISTRIBUTION For the first quarter the REIT announced the interim distribution, for the operating period of April 1-June 30, 2016 at 0.19 THB per unit, totaling 252 million THB or 100.5 percent dividend payout the record date for dividend’s entitlement is August 25, 2016 and the book closure date for shareholder’s name collection in accordance with Section 225 of Securities and Exchange Act is August 26, 2016 when September 9, 2016 is the payment date.
100.5% Dividend Payout Ratio
EPS
0.804
0.426
DPU
0.765
0.420
0.179
FY’2014/2015
0.175
1Q’2015/2016
0.170
FY’2015/2016
0.170
1Q’2016/2017
IR-Newsletter
Investor Newsletter FY 2016/2017
IMPACT Growth Real Estate Investment Trust
3 OPERATING PERFORMANCE 3.1 Occupancy Rate The average occupancy rate for this quarter (April-June 2016) is at 46.4 percent, slightly decrease from the same period of last year as 49.2 percent. In consideration of each venue, almost all venues are decrease in occupancy rate lead by IMPACT Arena, IMPACT Exhibition Center and IMPACT Forum due to lacking of international concert and some events switch between their venues such as Smart SME Expo, Amway and OTOP Midyear 2016, move from IMPACT Exhibition Center into IMPACT Challenger, thus only IMPACT Challenger is increase up to 10.3 percent. The average occupancy rate in this quarter, performed slightly down.
IMPACT ARENA
33%
IMPACT EXHIBITION CENTER
IMPACT FORUM
IMPACT CHALLENGER
61%
44%
56%
15% 15%
1Q’2015/2016 1Q’2016/2017
1Q’2015/2016 1Q’2016/2017
1Q’2015/2016 1Q’2016/2017
50%
55%
1Q’2015/2016 1Q’2016/2017
IR-Newsletter
Investor Newsletter FY 2016/2017
IMPACT Growth Real Estate Investment Trust
3.2 Average Rental Rate The average rental rate for this quarter (April-June 2016) is at 64.5 THB/sq.m./day which increase from the same period of last year and from the last quarter because increase in new customers. Through to the end of this quarter, the major customer is still public sector as 60 percent of all customers. Although the international private sector was decreased from the same period of last year, Government sector increase as 25 percent, International Sector was slightly decreased in this quarter.
64.5
1Q’2016/2017
63.8
1Q’2015/2016
61.7 AVERAGE RENTAL RATE
International Domestic
4Q’2015/2016
AVERAGE REVENUE CONTRIBUTION BY TYPE OF CUSTOMERS
Government
20%
60%
20%
13%
63%
24%
15%
60%
25%
1Q’2015/2016
FY’2015/2016
1Q’2016/2017
IR-Newsletter
Investor Newsletter FY 2016/2017
IMPACT Growth Real Estate Investment Trust
4 FINANCIAL HILIGHT
4.1 Statement of Income
Statement of Income 1Q’2016/2017
% Total Incomes
4Q’2015/2016
%
1Q’2015/2016
%
Growth QOQ
Growth YOY
Service Incomes
486.4
99.70%
544.33
99.53%
497.37
99.80%
-10.60%
-2.20%
Interest Income
0.23
0.00%
0.24
0.04%
0.27
0.10%
-4.20%
-14.80%
Other Income
1.09
0.20%
2.32
0.42%
0.62
0.10%
-53.00%
75.80%
Total Revenue
487.72
100.00%
546.89
100.00%
498.26
100.00%
-10.80%
-2.10%
1Q’2016/2017
% Total Expense
4Q’2015/2016
%
1Q’2015/2016
%
Growth QOQ
Growth YOY
Cost of Services
68.72
29.10%
67.71
29.06%
70.85
30.30%
1.50%
-3.00%
Administration Expenses
49.28
20.90%
47.91
20.56%
54.77
23.40%
2.90%
-10.00%
118
50.00%
115.62
49.62%
125.62
53.60%
2.10%
-6.10%
REIT Management Fee
17.38
7.40%
36.76
15.78%
29.09
12.40%
-52.70%
-40.30%
Trustee’s Fee
15.3
6.50%
15.3
6.57%
15.29
6.50%
0.00%
0.10%
Registrar’s Fee
0.9
0.40%
0.92
0.39%
0.9
0.40%
-2.20%
0.00%
Property Management Fee
41.7
17.70%
16.74
7.18%
15.23
6.50%
149.10%
173.80%
Professional Fees
1.05
0.40%
0.86
0.37%
1.11
0.50%
22.10%
-5.40%
Total Fee Related
76.33
32.30%
70.58
30.29%
61.62
26.30%
8.10%
23.90%
Finance Cost
41.69
17.70%
46.82
20.09%
46.92
20.00%
-11.00%
-11.10%
Total Expenses
236.02
100.00%
233.02
100.00%
234.15
100.00%
1.30%
0.80%
Net Investment Income
251.7
51.60%
313.86
57.39%
264.12
53.00%
-19.80%
-4.70%
Net Realised Gains on Investments in Securities
0.49
0.10%
5.96
1.09%
0
0.00%
-91.80%
Net Unrealised Gains on Investments
0.96
0.20%
10.92
2.00%
1.98
0.40%
-91.20%
-51.50%
Total Unrealised Gains on Investments
1.44
0.30%
16.88
3.09%
1.98
0.40%
-91.50%
-27.30%
253.14
51.90%
330.74
59.17%
266.1
53.40%
-21.80%
-4.90%
Investment Incomes
Expense
Operating Cost
Unrealised Gains on Investments
Increase in Net Assets from Operations
IR-Newsletter
Investor Newsletter FY 2016/2017
IMPACT Growth Real Estate Investment Trust 4.2 Balance Sheet
1Q’2016/2017
% to Total Asset
4Q’2015/2016
% to Total Asset
1Q’2015/2016
% to Total Asset
% Change QOQ
% Change YOY
Investments in Properties at Fair Value
19,619.00
96%
19,619.00
96%
19,603.00
96%
0%
0%
Investments in Securities at Fair Value
401.59
2%
500.143
2%
404.05
2%
-20%
-1%
Cash and Cash at Banks
236.93
1%
254.634
1%
196.45
1%
-7%
21%
From Service
131.92
1%
128.65
1%
150.3
1%
3%
-12%
From Interest
0.05
0%
0.25
0%
0.02
0%
-82%
125%
Prepaid Expenses
4.42
0%
7.31
0%
4.89
0%
-40%
-10%
Other Assets
18.22
0%
7.748
0%
5.4
0%
135%
237%
Total Assets
20,412.12
100%
20,517.74
100%
20,364.10
100%
-1%
0%
Trade Payables
89.71
0%
96.807
0%
71.65
0%
-7%
25%
Other Payables
2.8
0%
12.411
0%
3.15
0%
-77%
-11%
Accrued Expenses
139.52
1%
122.319
1%
164.35
1%
14%
-15%
Unearned Income
141.58
1%
180.697
1%
147.77
1%
-22%
-4%
Security Deposits
11.29
0%
10.277
0%
13.3
0%
10%
-15%
Other Liabilities
93.06
0%
87.13
0%
74.15
0%
7%
26%
Current Portion of Long-Term Loans
4.75
0%
4.65
0%
0%
2%
Long-Term Loans
3,894.27
19%
3,895.35
19%
3,900.00
19%
0%
0%
Total Liabilities
4,376.99
21%
4,409.64
21%
4,374.37
21%
-1%
0%
Net Assets
16,035.13
79%
16,108.10
79%
15,989.73
79%
0%
0%
Net Assets:
15,714.50
77%
15,714.50
77%
15,714.50
77%
0%
0%
320.63
2%
393.604
2%
275.23
1%
-19%
16%
16,035.13
79%
16,108.10
79%
15,989.73
79%
-0.0045%
0.0028%
Balance Sheet Assets
Receivables
Liabilities
Capital from Unitholders Retained Earnings Net Assets
10.8162
10.8655
10.7856
IR-Newsletter
Investor Newsletter FY 2016/2017
IMPACT Growth Real Estate Investment Trust
4.3 Financial Ratio
Profitability Ratio
1Q’2015/2016
86% 88% 86%
Gross Profit Margin
4Q’2015/2016
1Q’2016/2017
75% 79% 76%
62% 66% 60%
53% 57% 52%
Operting Profit Margin
EBITDA Margin
Net Investment Income Margin
IR-Newsletter
Investor Newsletter FY 2016/2017
IMPACT Growth Real Estate Investment Trust
5 REIT’S BASIC INFORMATION REIT’s Name
IMPACT Growth Real Estate Invesment Trust (IMPACT Growth REIT)
REIT Manager
RMI Company Limited
Property Manager
IMPACT Exhibition Management Co., Ltd.
Trustee
Kasikorn Asset Management Co., Ltd.
Investment Amount
19,614,500,000 THB for first investments in Properties
Asset investment Detail
Investment in property and 4 buildings of IMPACT exhibition and convention center with facilities and equipments (192-2-88.6 rai/167,162 sq.m.)
Investment Unit
1,482,500,000 units
Holding
Freehold
First Trade Day
October 1, 2014
Value Per Unit
10.60 THB
Dividend Policy
Not over 90% of net profit by adjusted accounting period where profit will return to trust unit holder as Year-End Distribution and Interim Distribution (If any)
IR-Newsletter
Investor Newsletter FY 2016/2017
IMPACT Growth Real Estate Investment Trust
6 REIT STRUCTURE
Public Trust Holders
Trust Certificates
Lenders
REIT Manager
Company Limited
Trustee Manage the REIT
Trustee Fee
Management Fee
Monitor the REIT
Appointed IMPACT as Property Manager Freehold Ownership
Property Manager
Manage an Operation of All Assets
IMPACT Arena
IMPACT Challenger
IMPACT Exhibition Center
IMPACT Forum