NANTAWAN Pool Villa Rama 9 New Krungthep Kreetha

Mr. Watcharin Kasinrerk, Managing Director (Housing Project), Land and Houses Public Company Limited, provided an overview of the real-estate market and a summary of the Company’s performance in 2024, along with the strategic plans for 2025, as follows:

• According to the Real Estate Information Center (REIC), in the first ten months of 2024, the number of residential properties transferred by developers in Bangkok Metropolis fell by 10% year-over-year, indicating continued weakness in overall housing demand. A breakdown by market segment shows that the low-rise housing market experienced a 22% decline in ownership transfers, whereas the condominium market remained relatively stable compared to the previous year.
• In terms of supply, data from Agency for Real Estate Affairs (AREA) indicate that the number of new residential units launched in Bangkok and surrounding areas in 2024 dropped about 40% year-over-year. The decreasing supply was observed across low-rise and condominium markets. Specifically, the single-detached housing segment saw a 20% decline in new unit launches. However, demand for this segment remained much lower than the number of newly launched units (by 50%), leading to a rise in unsold inventory. Consequently, the single-detached housing market, the Company’s key segment, has faced intense competition since 2022.
• The real-estate market in 2025 may benefit from positive economic factors, such as the projected GDP growth of about 2.9% and a tendency for declining interest rates. Economic growth is expected to be driven by public-sector spending and the recovery of the tourism industry, while exports remain sluggish, limiting overall growth potential. Additionally, housing demand remains constrained by a higher volume of non-performing loans (NPLs) and high household debts. It prompts financial institutions to maintain strict lending criteria for mortgage approvals. Therefore, developers must prioritize liquidity management and exercise prudence in investment decisions for new project developments.

Performance in 2024

• In 2024, the low-rise housing segment, comprising single-detached houses, semi-detached houses, and townhouses, remained the Company’s primary revenue contributor, accounting for 80% of its total sales volume. Geographically, Bangkok Metropolis contributed to the major sales volume (around 88%). Over half came from residential units priced at above THB 10 million.
• The Company introduced a new single-detached housing brand, “vie”, under “The Limitless Life” concept. Designed in a modern minimal style, the brand emphasizes open usable areas and functionality. In 2024, “vie” was launched in three strategic locations, namely Ratchaphruek-Tat Mai, Ramindra-Outer Ring Expressway, and Pinklao-Phutthamonthon Sai 5.
  
  
  
  
• In 2024, the Company launched 12 new projects with a combined value of THB 30.85 billion, all of which were low-rise housing developments. This figure exceeded the original plan announced at the beginning of the year, with an additional project – "vie Ramindra-Outer Ring Expressway" – worth THB 650 million. Overall, the total investment in new low-rise housing projects rose 8.4% year-over-year. Moreover, during the year, the Company invested about THB 4.3 billion in land acquisition for future residential development.

Operational Plan for 2025: Launch of Four Mid-to-High-End Projects

• With a sufficient unsold inventory, the Company plans to launch only four new projects with a total value of THB 11.18 billion in 2025, representing a 64% drop from the previous year. All new projects will be single-detached housing developments: three in Bangkok Metropolis and one in Phuket. The Company will launch these projects under two key brands: Siwalee (priced between THB 8 and 15 million) and Nantawan and VIVE (priced between THB 30 and 80 million). The focus will be on expanding the mid-to-high-end housing segment and replacing sold-out projects of the previous year.
• Including ongoing projects, the Company will manage 75 projects in 2025 with a combined value of THB 93 billion, consisting of 69 low-rise housing projects valued at THB 79.5 billion and six condominium projects valued at over THB 13.5 billion. The average selling price per unit is projected to be THB 10.5 million, a rise from THB 9.8 million in the previous year.

Mr. Chokchai Walitwarangkoon, Managing Director (Condominium Project), provided insights into the Company’s condominium market performance and trends:

• According to the Real Estate Information Center (REIC), the number of condominium units transferred by developers in Bangkok Metropolis during the first ten months of 2024 remained relatively equal to the previous year. The proportion of foreign ownership transfers increased to 15%, up from 13.5% in 2023.
• Data from Agency for Real Estate Affairs (AREA) revealed that the number of new condominium units launched in Bangkok Metropolis in 2024 dropped by 43% from last year. This decline reflects developers’ strategic adjustments in response to weakened purchasing power. However, due to the higher demand than new supply, the number of unsold condominium units in the market fell by the end of 2024, which is a positive indicator for the market.
• In 2025, the condominium market is expected to recover gradually thanks to less unsold units from 2024 and lower interest rates. However, challenges remain, including higher mortgage rejection rates and slow economic recovery. Moreover, loan-to-value (LTV) regulations continue to constrain demand. Consequently, condominium demand in 2025 may not yet return to pre-COVID-19 levels.

Performance Overview for 2024

• In 2024, the Company achieved condominium sales of over THB 3.4 billion (20% of total sales). The majority came from the "Wan Vayla Na Chaophraya" project, generating around THB 2.5 billion. This riverside condominium project, launched in late 2023, received strong market demand. In September 2024, the project launched Tower C as a new phase. As of now, the project has achieved cumulative sales of THB 7.7 billion, or 52% of the total project value. The construction is currently 20% completed, with ownership transfers expected to begin by late 2026.
• As of year-end 2024, the Company had six condominium projects for sale, with a combined value over THB 13.5 billion. Five were completed and ready-to-transfer projects, valued at THB 6.2 billion. The Wan Vayla Na Chaophraya project was still under construction, with remaining inventory worth over THB 7.3 billion. In 2025, the Company will focus on driving condominium sales from its existing project portfolio.

Mr. Achawin Asavabhokhin, Deputy Managing Director and Chief Financial Officer, provided an overview of the Company’s financial position and rental real-estate operations as follows:

Performance Overview for 2024

• The Company maintains a strong financial position, supported by effective liquidity management and existing investment assets. In 2024, the Company issued THB 12-billion debentures with a maturity of 2-3 years and an average interest rate of 3.14% per annum to support operational cash flow. As of year-end 2024, the Company reported net interest-bearing debt of THB 67 billion, a net debt-to-equity ratio of 1.3 times, and an average finance cost at 3.11%
• Regarding the rental real-estate and hospitality business, the Company currently manages 18 projects:
  • Grande Centre Point Hotels: seven operating properties (six sold to REIT) and three under construction
  • Terminal 21 Shopping Malls: three locations (two sold to REIT)
  • Overseas investments: five apartment and hotel properties in the United States
• This business outperformed initial projections, with estimated 16% year-over-year revenue growth in 2024. The robust performance was primarily driven by:
  • Hotel operations in Thailand, particularly Grande Centre Point Surawong, which operated for a full year in 2024.
  • The acquisition of Residence Inn Manhattan Beach in March 2024, doubling the revenue from U.S. hotel operations compared to the previous year.
• The Company invested THB 5.8 billion in the rental and hospitality real-estate sector, comprising:
  • Acquisition of Residence Inn Manhattan Beach THB 2.4 billion
  • Development of Grande Centre Point Lumphini THB 2.1 billion
  • Development of other hotel and apartment projects THB 1.3 billion
• In November 2024, the Company divested Terminal 21 Pattaya to the LH Shopping Center Real Estate Investment Trust (LHSC) for THB 5.68 billion through an additional unit offering. Due to robust demand from institutional and retail investors, the Company’s equity stake in LHSC was adjusted from 9.0% to 7.8%.

Operational Plan for 2025: Expansion of Rental Business and Debt-to-Equity Reduction

• The Company has allocated an THB 8.5-billion investment budget, which includes:
  • Land acquisition for future residential development THB 4.0 billion
  • Investment in rental real estate THB 4.5 billion
• In April 2025, the Company will launch Grande Centre Point Lumphini, a mixed-use development featuring 12,700 sq.m. of office space, a 512-room hotel, and the largest banquet and event space among all Grande Centre Point hotels. Future projects in the pipeline include Grande Centre Point Ratchadamri 2 (to be launched in 2027) and Grande Centre Point Pattaya 3 (to be launched in 2028).
• The Company plans to rebalance its U.S. investment portfolio by reducing the proportion of apartment assets due to the post-COVID-19 work-from-home trend. The situation caused a strategic shift toward hotel operations.
• The Company plans to issue debentures valued at THB 12 billion to refinance maturing bonds. By the end of 2025, the net debt-to-equity ratio is projected to decline to 1.0 time, down from the 2024 yearend level.

Newly Launched Projects in 2025

Rental Real-estate Business

The Company operates a rental real-estate business in Thailand and the United States through two subsidiaries: LH Mall & Hotel (LHMH) manages rental properties in Thailand, and LHUSA in the United States. Its rental business portfolio consists of hotels, shopping malls, apartments, and office space. All projects listed in the income statement as hotel revenue and rental income are presented in the following table.