IR-Newsletter
Investor Newsletter FY 2016/2017
IMPACT Growth Real Estate Investment Trust
REIT Key Factsheet (End of September 2016) Unit Price : 16.00 THB NAV : 10.8493 Number of Unit : 1,482,500,000 Units Market Cap : 23.7 billion THB
1 OVERVIEW 1.1 Revenue & Expense 3 Months performance for the period of July-September 2016 IMPACT Growth Real Estate Investment Trust (IMPACT Growth REIT) has reported 2nd quarter performance of 2016/2017 (July-September 2016) with total revenue 539.06 million THB, which came from 535.33 million THB service incomes, interest income 0.27 million THB, 3.46 million THB other income, totally brings 301.09 million THB net profit or a 56 percent net profit margin, in line with its 2016 target around 50-55 percent. 535.33 million THB service incomes: • 85 percent Venue Sale • 6 percent F&B Right Fee • 6 percent Long Term Rent • 3 percent Parking • 0.3 percent Media Right Fee
F&B Right Fee
Revenue Structure for second quarter of 2016 (July-September 2016) Parking
Media Right Fee
85%
Venue Sale
6% 3% 0.3%
6% Long Term Rent
IR-Newsletter
Investor Newsletter FY 2016/2017
IMPACT Growth Real Estate Investment Trust The IMPACT Exhibition Center Hall 1-8 was the key revenue driver for this quarter, with the highest rate of occupancy rate at 69.1 percent. In terms of IMPACT Growth REIT’s cost of service was at 70.52 million THB, which mainly came from 51 percent of utilities cost. Meanwhile administration expenses were at 41.80 million THB which came from utility cost, security service and cleaning service (47 percent), and repair and maintenance assets cost (33 percent) As a result, REIT’s net investment income was at 299.68 million THB with 87 percent gross profit margin and reported total realized and unrealized gains on investment was at 1.41 million THB, thus the REIT’s increase in net assets from operation of 301.09 million THB with 56 percent net profit margin.
51% Service Cost (Equipment + Sound + Casual)
Utility Cost
9%
Cost of Service’s structure for second quarter of 2016 (July-September 2016)
Security, Cleaning, Laundry
23% Other Costs
14% 3%
Property Tax
1.2 Balance Sheet At the end of September 2016, The REIT reported investments in properties in fair value of 19,619 million THB, investments in securities (Fixed Income Fund) of 402.99 million THB, cash and cash at banks of 262.56 million THB, the REIT reported total assets of 20,431.39 million THB, The REIT reported long term loan from Financial Institution and Life Insurance in the amount of 3,893 million THB, current portion of long-term loans 4.75 million THB, the REIT’s total liabilities at 4,347 million THB. As a result, the REIT has its net asset of 16,084.22 million THB or 10.8493 THB in net asset value per unit, slightly increase from the end of June 2016 as 16,035.13 million THB in net asset or 10.8162 THB.
IR-Newsletter
Investor Newsletter FY 2016/2017
IMPACT Growth Real Estate Investment Trust
2 DISTRIBUTION For the second quarter the REIT announced the interim distribution, for the operating period of July 1-September 30, 2016 at 0.17 THB per unit, totaling 252 million THB or 85 percent dividend payout. The record date for dividend’s entitlement was November 24, 2016 and the book closure date for shareholder’s name collection in accordance with Section 225 of Securities and Exchange Act is November 25, 2016 when December 9, 2016 was the payment date.
85% Dividend Payout Ratio
EPS
0.80
0.43
DPU
0.765
0.42
0.18
FY’2014/2015
0.20
0.18
2Q’2015/2016
FY’2015/2016
0.17
2Q’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 (July-September 2016) was at 56.1 percent, increase from the same period of last year as 52.5 percent. In consideration of each venue, almost all venues are increase in occupancy rate lead by IMPACT Exhibition Center, IMPACT Challenger, IMPACT Forum due to the increase in government segment and some events that moved from another quarter such as the National Science and Technology fair, had moved from IMPACT Challenger from the third quarter into IMPACT Exhibition Center and the Big Bad Wolf Book Sale Bangkok 2016, new events in IMPACT Forum, which increased their occupancy rate, thus average occupancy rate in this quarter was increased in both QOQ and YOY at 20.8%, 6.8% respectively even IMPACT Arena was decreased -19% YOY by lacking of the international concert.
2Q’2016/2017 OCCUPANCY RATE
48%
IMPACT ARENA
IMPACT EXHIBITION CENTER
IMPACT FORUM
IMPACT CHALLENGER
2Q’2016/2017 2Q’2015/2016
59%
69% 68%
29% 22%
2Q’2016/2017 2Q’2015/2016
2Q’2016/2017 2Q’2015/2016
52% 46%
2Q’2016/2017 2Q’2015/2016
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 (July-September 2016) was at 62.8 THB/sq.m./day which has increased from the same period of last year at 61.9 THB/sq.m./day, IMPACT Challenger is the best average rental rate within 4 assets due to the increased of repeated events and show events/area were expanded and move from other quarter into this quarter especially government customer as 46 percent which up 53 percent (YOY) from the same period and the major customer is still public sector as 48 percent of all customers.
64.5
1Q’2016/2017
63.8
1Q’2015/2016
61.9 AVERAGE RENTAL RATE
International Domestic
2Q’2015/2016
62.8
62
2Q’2016/2017
FY’2015/2016
AVERAGE REVENUE CONTRIBUTION BY TYPE OF CUSTOMERS
Government
20%
60%
20%
12%
49%
39%
13%
63%
22%
15%
60%
25%
6%
48%
46%
1Q’2015/2016
2Q’2015/2016
FY’2015/2016
1Q’2016/2017
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 2Q’2016/2017
% Total Revenue
1Q’2016/2017
%
2Q’2015/2016
%
Growth QOQ
Growth YOY
Service Incomes
535.3
99%
486.4
99.7%
500.3
98.8%
10%
7%
Interest Income
0.3
0.0%
0.23
0.0%
0.24
0.05%
19%
15%
Other Income
3.5
1%
1.09
0.2%
5.7
1.1%
217%
-39%
Total Revenue
539.1
100.0%
487.7
100.0%
506.2
100.0%
-10.6%
-2.1%
2Q’2016/2017
% Total Expense
1Q’2016/2017
%
2Q’2015/2016
%
Growth QOQ
Growth YOY
Cost of Services
70.5
29%
68.7
29.1%
73.3
30.5%
3%
-4%
Administration Expenses
41.8
17%
49.3
20.9%
48.9
20.3%
-15%
-15%
Operating Cost
112.3
47%
118
50.0%
122.20
50.8%
-5%
-8%
REIT Management Fee
23.2
10%
17.4
7.4%
39.1
16.2%
33%
-41%
Trustee’s Fee
15.5
6%
15.3
6.5%
15.4
6.4%
1%
0%
Registrar’s Fee
0.9
0.4%
0.9
0.4%
0.9
0.4%
0%
0%
Property Management Fee
47.5
20%
41.7
17.7%
15.6
6.5%
14%
204%
Professional Fees
0.7
0.3%
1.05
0.4%
0.7
0.3%
-32%
0%
Total Fee Related
87.8
37%
76.3
32.3%
71.7
29.8%
15%
22%
Finance Cost
39.3
16%
41.7
17.7%
46.6
19.6%
-6%
-16%
Total Expenses
239.4
100%
236.0
100%
240.5
100%
Net Investment Income
299.7
56%
251.7
51.6%
265.7
52.5%
19%
13%
0.5
0.1%
Investment Incomes
Expense
Unrealised Gains on Investments Net Realised Gains on Investments in Securities Net Unrealised Gains on Investments
1.4
0.3%
1.0
0.2%
1.6
0.3%
47%
-11%
Total Unrealised Gains on Investments
1.4
0.3%
1.4
0.3%
1.6
0.3%
-2%
-11%
301.1
56%
253.1
51.9%
267.3
52.8%
19%
13%
Increase in Net Assets from Operations
IR-Newsletter
Investor Newsletter FY 2016/2017
IMPACT Growth Real Estate Investment Trust 4.2 Balance Sheet Balance Sheet
2Q’2016/2017
% to Total Asset
1Q’2016/2017
% to Total Asset
2Q’2015/2016
% to Total Asset
% Change QOQ
% Change YOY
Assets 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
402.99
2%
401.59
2%
405.64
2%
0%
-1%
Cash and Cash at Banks
262.56
1%
236.93
1%
257.95
1%
11%
2%
From Service
128.83
1%
131.92
1%
91.38
0%
-2%
41%
From Interest
0.32
0%
0.045
0%
0.25
0%
602%
26%
Prepaid Expenses
11.70
0%
4.415
0%
4.72
0%
165%
148%
6.00
0%
18.22
0%
7.70
0%
-67%
-22%
100%
0%
0%
Receivables
Other Assets Total Assets
20,431.39
100%
20,412.12
100%
20,370.64
Liabilities Trade Payables
63.38
0%
89.71
0%
89.33
0%
-29%
-29%
Other Payables
3.27
0%
2.81
0%
4.09
0%
17%
-20%
Accrued Expenses
86.89
0%
139.52
1%
87.28
0%
-38%
0%
Unearned Income
199.25
1%
141.58
1%
200.09
1%
41%
0%
Security Deposits
11.78
0%
11.29
0%
11.60
0%
4%
2%
Other Liabilities
84.76
0%
93.06
0%
80.68
0%
-9%
5%
Current Portion of Long-Term Loans
4.75
0%
4.75
0%
0
0%
0%
0%
Long-Term Loans
3,893.08
19%
3,894.27
19%
3,900.00
19%
0%
0%
Total Liabilities
4,347.17
21%
4,376.99
21%
4,373.06
21%
-1%
-1%
Net Assets
16,084.22
79%
16,035.13
79%
15,997.58
79%
0%
1%
Net Assets:
15,714.50
77%
15,714.50
77%
15,714.50
77%
0%
0%
369.72
2%
320.63
2%
283.09
1%
15%
31%
79%
0%
1%
Capital from Unitholders Retained Earnings Net Assets
16,084.22 10.8493
79%
16,035.13 10.8162
79%
15,997.59 10.7909
IR-Newsletter
Investor Newsletter FY 2016/2017
IMPACT Growth Real Estate Investment Trust
4.3 Financial Ratio
Profitability Ratio
2Q’2558/2559
1Q’2559/2560
2Q’2559/2560
85% 86% 87%
76% 76% 79%
62% 60% 63%
52% 52% 56%
53% 52% 56%
Gross Profit Margin
Operting Profit Margin
EBITDA Margin
Net Investment Income Margin
Net Profit 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)
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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