L&H posted a profit of 1.838 billion baht in Q3 increase 58 % announced to pay interim dividends for the second time in 2003.

Mr Anant Asavabhokhin, President of Land & Houses Public Co.,Ltd, said the company and subsidiaries reported revenues of 4.708 billion baht from the transfer of 836 housing units to buyers during the third quarter of this year. Given the number of transferred units, the company holds a 22 % market share in the detached house sector built by developers in Greater Bangkok and vicinity.

Mr Anant added that the housing registration in the Bangkok Metropolitan area totaled 31,121 units during the first nine months of this year, rising 17% from the same period last year. Among the total registration, 17,011 units were built by developers or up 33% year-on-year.

Comparison of housing registration between self-built units and housing estates between January - September

Type 2002 (units) 2003 (units) change
Self-built units 13,915 14,110 1.4 %
Units built by developers 12,778 17,011 33 %
Total 26,693 31,121 17 %

Comparison of unit types for the registered units built by developers between January - September

Type 2002 (units) 2003 (units) change
Detached house 5,703 9,077 59 %
Duplex 6 459 7,550 %
Townhouse & Shophouse 5,346 6,042 13 %
Condominium 1,723 1,433 - 17 %

When comparing the projected registration in 2003 and 1995 (the year of housing registration peak), the forecast of units built by developers this year would be only 14.2% of the level in 1995.

Comparison of housing registration between 1995-2002 and the forecast in 2003

Type 1995 1996 1997 1998 1999 2000 2001 2002 2003* Forecast
Self-built units 32,118 28,059 27,418 22,716 15,497 18,064 19,639 17,693 19,500
Housing estates 140,301 138,726 117,937 41,148 17,885 13,964 14,384 16,342 24,500
Total 172,419 166,785 145,355 63,864 33,382 32,028 34,023 34,035 44,000

Mr Anant is confident that the housing market will continue to grow with sustainable growth because housing demand comes from real buyers who have actual financial readiness and stability. Moreover, the sector has received strong supports from the government and banks are heavily competing to extend housing loans to homebuyers.

Mr Adisorn Thananan-narapool, Senior Executive Vice-President of Land & Houses, explained about the company's performance that the company and subsidiaries posted a profit of 1.838 billion baht during the third quarter of this year, up 58 % from the same period last year and has a net profit of 1.167 billion bath. During nine months of this year have got total profit 4.575 billion baht, increase 67 % from 2.735 billion baht at the same period last year.

Contributing to the rising profit in the third quarter was as following;

  1. The company and subsidiaries recorded revenues totaling 4.706 billion baht from the house transfer to buyers, up 15.14 % year-on-year.
  2. The company and subsidiaries booked higher profits from the divesting of non-core investment by 300 million baht when compared to the same period last year.
  3. Interest expenses in the third quarter of 2003 dropped by 29 million baht when compared to the same period in 2002 because the company was able to continuously lower debt burdens and financial costs following the falling interest rate trend in the financial market.

The company and subsidiaries repaid loans up to 2.700 billion baht during the nine-month period of this year. The shareholders' equity rose by 5.000 billion baht due to healthy profits during the first nine months. The debt to equity ratio of L&H and subsidiaries stood at 0.2:1 at the end of third quarter, down from 0.4:1 at the end of 2002.

With strong financial status and the total cash on hand of 1.500 billion baht, the company's board of directors approved an interim dividend payment to shareholders at .25 baht per share, the second interim dividend payment in 2003. This year, the company's first interim dividend payment to shareholders was made in September at 0.20 baht per share.