Hemaraj’s 2012 Goal – Projecting 50% Operating Revenue increase Industrial Land Sales target raised again to 2,300 rai

Bangkok 15 August 2012 – Hemaraj Land And Development Public Company Limited announced its revised Total Operating Revenue target and Industrial Land Sales target after a solid 1^st half 2012 performance in all areas.  Total Operating Revenue target was projected to increase around 50% y-o-y while the Industrial Land Sales target was raised again to 2,300 rai.  In addition, since July 26, 2012, Gheco-One 660MW IPP power plant (a 35/65 Joint Venture with Glow) already started its commercial operation.

David Nardone, President & CEO of Hemaraj said “We finished the first half of 2012 with strong overall results. The operating business during the last 6 quarters has been at record levels and the revenue recognition has now caught up based on industrial estate land transfers.  Total Operating Revenue increased by 120% with Industrial Estate Land Sales, Industrial Estates Utilities, and Ready Built Factory rental revenue increased by 397%, 14%, and 49%, respectively.

In power development, our Gheco-One 660 MW IPP power has started commercial operation since 26 July this year and will bring average full-year profit of 1.4 billion baht per annum to us from second half of 2012 to 2020.”

 

Mr Vivat Jiratikarnsakul, Executive Vice President of Hemaraj said “Foreign Direct Investment led by Japan has continued with over 50% of our customer investment during the last 10 quarters.  For the first half of 2012, Industrial Estate Sales were 1,447 rai (572.1 acres or 231.5 hectares), #1 market share with 67 contracts, 44 new customers and 23 projects expansion from existing customers, all record level.  With these operating results reflected, we have increased for the third time our 2012 industrial estate sales forecast to 2,300 rai from our original 2012 budget of 1,500 rai.”

 

Prospects for rental are very promising.  We have launched 4 Hemaraj Logistics Parks inside or near 3 of our Eastern Seaboard industrial estates.  More variety of products will be added to serve manufacturers and Third Party Logistics Providers (3PL’s) for logistics warehouses. Ready Built Factory and Logistics Park rental for first half of 2012 grew by 44,018 square meters or a 28%  increase from the Year-end 2011 cumulative balance while another 31,565 square meters of pre-leased factories is due to commence over the next 1-7 months.   We are therefore confident to achieve target of 60% increase for RBF and Logistics Park rental or 95,000 square meters from cumulative balance of last year.”

 

David Nardone added “For the first half of 2012, Hemaraj posted a total net profit of Baht 954.5 million or on a Normalized Net Income (NNI) basis, taking out swings in Unrealized Foreign Exchange, Baht 963.1 million, comparable to the NNI for the first 6 months of 2011 of Baht 93.5 million. The Board of Directors has approved the interim dividends from the operating results from 1 January 2012 to 30 June 2012 at Bath 0.04 per share to be payable on 7 September 2012.

 

“Outlook for industrial land sales continues to grow.  Thailand remains attractive to foreign direct investment due to cost, currency and market access.  This is reflected in the total investment value

 

promoted by Board of Investment (in Baht) increasing by 34% from January to June 2012.  Thus the investment policy of Hemaraj will continue in core business areas – industrial estates, utilities, power, and properties.   In the 2^nd half of 2012 we expect to see a continued growth in all areas with rising industrial estate land sales, increasing demands for rental spaces and utilities, thus resulting in increasing our Operating Revenue projection 50% y-o-y” concluded David.