Message to Unitholders

Ms. Auyporn Footrakul
Chairman of the Board of Directors
CPN REIT Management Company Limited

To All Trust Unitholders,

In 2019, CPN Retail Growth Leasehold REIT (“CPNREIT”) continued to prosper under efficient management of Central Pattana Public Company Limited (“CPN”), the property manager. This is well proven by the high occupancy rate of 95.8% of five shopping malls that CPNREIT has invested in. Such success was attributable to the shopping mall management under the ‘Center of Life’ and ‘Center of Community’ concept, entailing various destination concepts such as Food Destination to offer a diverse array of food; Family Destination to encourage family members to spend time together; and Co-Working Destination to allow for an exchange of ideas and experiences. The satisfactory full-year 2019 results of CentralPlaza Rama 3, after completion of its major renovation in 2018, and the favorable performance of other shopping malls altogether helped growing CPNREIT’s total revenues by 4.3% from a year earlier and enabled CPNREIT to distribute returns from the 2019 performance at a rate of THB 1.6230 per unit, an increase of 0.4%.

For the operation of CPNREIT, CPN REIT Management Company Limited (“the Company”), as the REIT Manager, has undertaken appropriate funding management. In early 2019, CPNREIT issued two tranches of fixed-rate debenture with total value of THB 4,495 million for repayment of floating-rate loans from financial institutions, in order to save interest expenses in the long term. TRIS Rating Co., Ltd. (“TRIS Rating” or “TRIS”) maintained both the issuer rating and rating of such debentures at “AA” with “Stable” outlook.

Then on 22 November 2019, the Extraordinary General Meeting of Unitholders No. 1/2019 passed the resolution to approve the additional investment by CPNREIT, consisting of

  • Group-1 Assets from CPN, comprising 1) CentralMarina, 2) CentralPlaza Lampang, 3) CentralPlaza Suratthani, and 4) CentralPlaza Ubonratchathani. These will procure financing sources for additional investment, including rental payment for renewal land lease of CentralPlaza Rama 2 in 2025 for the lease period of August 2025 to August 2055; and
  • Group-2 Assets from GLAND Office Leasehold Real Estate Investment Trust (“GLANDRT”), comprising 1) The Ninth Towers Office Building and 2) Unilever House Office Building.

This investment in additional assets, the Company has performed in accordance with the strategy of consistently exploring investment opportunities for CPNREIT to ensuring ongoing growth. The Company will procure benefits from those assets to generate income and returns to CPNREIT and assure consistent returns to of the trust unitholders in the long run.

Lastly, the Company, as the REIT Manager, would like to express our gratitude to all trust unitholders for your continued support. The Company is committed to managing CPNREIT under the corporate governance policy for sustainable growth of CPNREIT and stable returns to all trust unitholders.