Land and Houses Public Company Limited or LH, a property development company, was founded in 1973 and incorporated as a limited company in 1983. The Company was authorized by the Stock Exchange of Thailand (SET) in 1989 and has been listed in the SET under the name Land and Houses Public Company Limited since 1991.
The Company's core business is the development of residential properties, including single-detached houses, semi-detached houses, townhouses, and condominiums, mainly located in Bangkok and its vicinity, as well as major provinces such as Chiang Mai, Chiang Rai, Khon Kaen, Nakhon Ratchasima, Udon Thani, Phuket, Maha Sarakham and Ayutthaya.
The Company has revenue from sales of landed properties, including single-detached houses, semi-detached houses, and townhouses, at approximately 90 percent, and from condominiums at approximately 10 percent.
The Company's key strength or differentiator is that the Company does not rely solely on revenue from the sales of properties, as the Company is not a pure developer. Instead, the Company generates revenues from 3 diversified sources, including
- Revenue from Residential Property business, including revenue from sales of single-detached houses, semi-detached houses, townhouses, and condominiums
- Revenue from Rental and Services business, including revenue from hotels, shopping malls, and rental office spaces
- Share of profits from investments in associated companies engaging in businesses related to the Company's core business
The Company has a revenue proportion between the residential property business (housing) and rental & services business (rental) at approximately 70:30 percent. Diversification of income sources is a mechanism that allows the Company to adjust its strategies to suit the economic situation and to ensure consistency and stability of the Company's performance.
The Company operates rental property business both domestically and internationally. In addition to its business in Thailand, which includes hotels, under the Grande Centre Point brand, and shopping malls, under the Terminal 21 brand, the Company also has rental properties in the US, including hotels and apartments.
The Company has currently invested in rental property projects which currently include hotels, shopping malls, and rental office spaces in potential locations. In Thailand, the Company undertakes the project development in-house, leveraging its expertise in both design and construction to enable effective cost control, as well as designing internal systems that support operating cost efficiency in the long term. While in the US, the Company focuses on acquiring completed projects. After the Company acquires or completes the construction of new rental and service properties, both in Thailand and the US, the Company will manage the projects by itself to achieve the target of occupancy rates and room rates/rent rates.
The Company plans to sell those properties; in Thailand, to real estate investment trusts (REITs), and in the United States, to third parties. Typically, the Company aims to sell the properties every year to realize returns on investment and to reinvest the proceeds from sales of such properties into the development of new projects.
At present, the Company does not have a plan to additionally sell or purchase the investment in associated companies, as the associated companies continue to deliver the decent operating results and consistently generate the share of profit. The Company currently invests in associated companies that related to its core business, such as real estate development, retail businesses related to home products, construction material manufacturing, and a financial business group including commercial banking with policies to provide loans to retail residential buyers.
The Company has a policy to pay dividends not less than 40% of the net profit after deduction of all reserves as required by laws and the Company's policies and the dividend payment will not materially and adversely affect our ordinary course of business. However, such dividend payment may be subject to change as the Board of Directors deems appropriate by taking into consideration of the Company's cash flow and investment plans, including other necessities and appropriateness.
The Company conducts its business in a sustainable way with policies to focus on the balance of business growth and caring for the environment, society, and governance and economic. The policies have been implemented in each aspect such as:
Environment The Company has prepared and published the greenhouse gas emission report which has been certified according to the ISO14064-1 standard and received certification from the Thailand Greenhouse Gas Management Organization (Public Organization, TGO). In addition, there are actions to reduce greenhouse gas emissions through various measures such as using energy-saving equipments, using renewable energy, waste management, etc.
Social The Company takes care of its employees by supporting the equality, rights, and welfare of all employees, and by having strong oversight of safety, occupational health and working environment. It also carries out activities for the communities and social development, through various projects focusing on promoting the quality of life and well-being of people in nearby communities.
Governance and economy The Company emphasizes on good governance and continues to enhance transparency standards by implementing anti-corruption policies and measures. The Company is currently certified as a member of the Private Sector Collective Action Coalition Against Corruption (CAC).
The Company underwent assessment and was named to the national and international sustainability indices listed below :
- Constituent of the FTSE4GOOD Index
- ESG Score rated as “BB level” by MSCI
- ESG Risk Score "Low-risk rating" by Morningstar Sustainalytics
- ASEAN Asset Class PLCs as assessed under ASEAN Corporate Governance Scorecard
- SET ESG Rating, rated “AAA level” by the Stock Exchange of Thailand
- Corporate Governance Assessment, “Excellent” rating by Thai Institute of Directors (Thai IOD)