Trust Strategy

The REIT Manager ‘s principal objectives are to deliver stable and sustainable growth distributions to unitholders in both form of dividend and net asset value per unit, while maintaining reasonable capital structure. The REIT Manager has adopted a 3 key Strategies to guide TREIT’s sustainable growth.

Detail of TREIT Strategy

Investment Growth

To generate more returns on investment and to increase the value of its net assets, TREIT aims to pursue for more investment opportunities in commercial property of asset, not only the assets owned by individuals within the same business group but the assets owned by others. The emphasis is specially placed on investments in factories and warehouses in principal industrial estates of the country and in strategic industrial locations of Thailand. However, the investments are not limited in factories and warehouses in Thailand only. TREIT is readily prepared for international investments in factories and warehouses if they have potential to yield high profits and the assets themselves are of good quality in line with the criteria of modern factories and warehouses.

In order to raise return from investments and TREITs net asset values, The REIT manager are in charge of considering properness and specifications of assets with potential for investment by taking the following key factors into account:

  • Quality of the assets i.e location, landscape, building conditions, engineering systems, utilities and overall environment; all must be complied with the regulations and having acceptable risks.
  • Returns on real estate index.
  • Qualifications of tenants and their ability to pay.
  • Occupancy Rate.

In addition, according to the regulations of investment based on the announcement of SEC TorChor.49/2555 and the contract of REIT establishment, TREIT can develop real estates at the rate of 10% of TREIT’s total asset values (Greenfield project), meaning that TREIT has opportunities to develop assets by themselves.

Assets Management and Enhancement

To understand and meet the needs of the retail tenants literally, the REIT Manager has hired Property Managers, TICON and TPARK (ex-owners of the properties), to manage its asset because of their relationship and knowing retail tenants as well as their working team which can serve tenants in time with efficiency. From their long experience as leaders in the business of building factories and warehouses for lease, both companies have large client base both Thai and international clients. Due to long experience and the role as a leader in real estate business concerning factories and warehouses. All these are to drive business expansion and increase in rental rates simultaneously and to control operational expense efficiently. The administration and management of real estates by TICON and TPARK are professionally conducted, that is, they have managed to heighten numbers of rental rates and contract renewals consistently. Furthermore, the management of TREIT have researched alternatives to enhance potential of real estates and managed rental areas to make the most of them such as studies on solar cell project on the roof space of factories and warehouses and etc.

Cost Management of TREIT

The REIT manager have planned to enable the proper structure of financial costs and loan costs. Regarding the principle of loan management, the REIT manager are to consider current interest rates in the market and predict future interest rates to consider proper loan forms at that particular time in support of continuous and consistent growth of TREIT. Also, TREIT has planned to make use of financial costs from debts at a proper level so that there are no risks of debt repayments and gearing ratio will not exceed 35% or at 60% in case REITs credit rating at investment grade which imposed by SEC.

The REIT manager have also supervised credit ratings of TREIT to be in a place which is suitable for investment (investment grade). At the present, TREIT is at level A (tha), ranked by FitchRatings (Thailand) Ltd. (last updated on February 22, 2018). That is the highest credit rating recorded of all REITs in Thailand.