Central Pattana PLC
Management's Discussion and Analysis (MD&A) 2Q25
EXECUTIVE SUMMARY
Macroeconomics
Domestic consumption already rebounded from April trough. the Bank of Thailand anticipated 2Q25 GDP growth to remain broadly in line with the previous quarter, supported by continued strength in exports, which remained a key engine of economic momentum. On the domestic front, private consumption was initially affected by the March earthquake, particularly in affected provinces, but showed signs of gradual stabilization and recovery YoY through May and June. 2H25 outlook relatively favorable than 1H25. This is supported by a series of fiscal and tourism-related policy initiatives aimed at boosting domestic demand, namely 1) the relaunch of the 'We Travel Together' co-payment program, which covers up to 50% of accommodation costs (capped at THB 3,000 per night) and includes additional e-vouchers for local spending, effective during 4 July -31 October 2025; 2) the gradual recovery in both domestic and international tourism, combined is expected to drive stronger retail footfall and discretionary spending nationwide. 2025 Thai GDP growth forecasts recently revised upward. the Thai Fiscal Policy Office (FPO) revised its 2025 GDP forecast upward from 2.0% to 2.2%, citing improving external conditions and macroeconomic stability, similar to the Bank of Thailand and the International Monetary Fund (IMF). However, expectations for domestic private consumption growth remained broadly unchanged.CPN 2Q25 performance
Rental and services consistently delivered resilient performance. This core business contributed approximately 90% of total revenues and continued to deliver solid revenue growth and significant increase in margin YoY. The key drivers include 1) solid same-store rental revenue growth thanks to buoyant growth of tenants' sales from holistic partnership solution for tenants, ongoing events and activities in shopping centers, and new experience for shoppers by introducing exciting new international and local brands to stimulate spending; 2) efficiency enhancement initiatives including solar rooftop installations and lower electricity tariffs; and 3) well-controlled SG&A. This led to 2Q25 revenues excluding the residential business of Bt11,653mn, growing 3% YoY and 1% QoQ. 2Q25 core profit was Bt3,902mn. If excluding the residential business, net profit grew 10% YoY and 3% QoQ, higher than revenue growth thanks to all the key drivers mentioned above that led to higher profitability. (Details of non-operating and one-off items on page 3) Continued improvement in gearing with 2H25 new malls and resi launch plan. The Company saw its net D/E ratio declined from 0.68x in 2Q24 to 0.63x. With new shopping mall and residential project launches scheduled in 2H25, Central Pattana is well-positioned to benefit from more supportive consumption environment in the second half of the year OVERVIEWThe Company has 4 business units under its management:
Rental and services (retail, food court, office).
Hotels, and
Residential properties for sale
Besides the above businesses, the Company also manages properties, which have been transferred to CPN Retail Growth Leasehold REIT ("CPNREIT"), CPN Commercial Growth property fund ("CPNCG") as well as properties under the management of Grand Canal Land PLC ("GLAND"), Company's subsidiary.
Assets under Central Pattana as at 2Q25Business Type | Total | CPN | CPNREIT | CPNCG | ||||
No. | '000 sqm | No. | '000 sqm | No. | '000 sqm | No. | '000 sqm | |
Shopping Mall Shopping malls in Bangkok Shopping malls in provinces Shopping mall in overseas Mega Bangna Total Shopping Mall | 17 23 1 1 42 | 932 923 84 169 2,109 | ||||||
17 23 1 1 42 | 780 822 84 169 1,855 | 3 4 7 | 152 102 254 | |||||
Community Mall | 16 | 176 | 16 | 176 | ||||
Total Retail Business | 58 | 2,286 | ||||||
Other Business Office Hotel Residential for sales - active (high-rise) Residential for sales - active (low-rise) | 7 10 14 15 | 170 1,681 rooms | 4 9 | 53 1,377 rooms | 2 1 | 34 304 rooms | 1 | 82 |
Assets under GLAND Office Residential for sales - active (low-rise) | 3 1 | 145 | 1 | 68 | 2 | 77 | ||
The Company has 42 shopping malls (17 in the Bangkok Metropolitan area, 23 upcountry, 1 overseas, Mega Bangna), 16 community malls with a total NLA of 2.3 mn sqm. The Company's 2Q25 occupancy rate of shopping mall and community malls slightly was similar 1Q25 and 2Q24 at 91%.
The Company has 10 office buildings for rent with a total rental area of 314,504 sqm. The occupancy rate in 2Q25 was at 91%, slightly improved from the previous quarter, thanks to improved occupancy of office buildings in Rama 9 location.
In 2Q25, the Company has a total of 10 hotels and 1,681 rooms with an average occupancy rate of 75%, similar to the previous quarter (76%) but improved from the previous year (70%), mainly from Centara and GO! hotels.
The Company launched 1 low-rise project, which is BAAN NIRADA CHAENGWATTANA-CHAIYAPHRUEK in 2Q25, bringing total active projects to 30 (14 condominiums and 16 low-rise) at the end of 2Q25.
FINANCIAL PERFORMANCE 2Q25 Profit & Loss Statement reconciliation between F/S and core performanceUnit: Baht mn | Per F/S | Impact from Rama 2 lease extension with CPNREIT | Core Performance |
Revenue from rental & services | 10,724 | - | 10,724 |
Revenue from other businesses | 936 | - | 936 |
Other income | 486 | - | 486 |
Total Revenue | 12,147 | - | 12,147 |
Cost of rental & services | (4,375) | - | (4,375) |
Cost of other businesses | (507) | - | (507) |
Administrative expense | (1,994) | - | (1,994) |
Operating profit (loss) | 5,270 | - | 5,270 |
Share of profit from invested co. | 507 | - | 507 |
Investment income | 541 | (504) | 37 |
Interest expense | (880) | - | (880) |
Income tax | (1,043) | 101 | (942) |
Minority interest | (90) | - | (90) |
Net profit to parent co. | 4,305 | (403) | 3,902 |
2Q25 Non-recurring item
The Company recognized lease receivable from financial lease with CPNREIT in 1Q20 which reflects the present value at that time. The Company will record accrued interest income until 2025 when the cash payment will be made. As such, the lease receivable will become equivalent to the actual cash receipt on the actual transaction date in 2025. In 2Q25, the Company recognized an interest income from the Central Rama 2 lease contract amounting to Bt403mn (after tax).
2Q24 Non-recurring items
As part of the Pinklao lease renewal between CPN and CPNREIT, the Company recorded fees related to the transaction of Baht 146 mn (after tax).
The following management discussion excludes an impact of non-operating item as mentioned above to the Company's best ability to reflect the financial performance based on actual business events, which may differ from the financial statements reviewed and/or audited by the auditors authorized by the Securities and Exchange Commission of Thailand (SEC).
Profit & Loss Statement (Baht mn) | 2Q24 | 1Q25 | 2Q25 | YoY (%) | QoQ (%) |
Revenue from rental & services (Retail, Food Court, Office) Revenue from Hotel Business Revenue from Residential Business Other Income | 10,468 452 1,957 606 | 10,792 528 602 240 | 10,724 442 494 486 | 2% (2%) (75%) (20%) | (1%) (16%) (18%) 102% |
Total Revenue | 13,483 | 12,162 | 12,147 | (10%) | (0%) |
Total Revenue (excl. non-recurring items) | 13,301 | 12,162 | 12,147 | (9%) | (0%) |
Total Revenue (excl. residential business and non-recurring items) | 11,344 | 11,560 | 11,653 | 3% | 1% |
Cost of Rental and Service Income Cost of Hotel Business Cost of Residential Business | 4,501 153 1,262 | 4,306 171 400 | 4,375 159 349 | (3%) 4% (72%) | 2% (7%) (13%) |
Total Cost | 5,916 | 4,878 | 4,882 | (17%) | 0% |
Total Cost (excl. non-recurring items) | 5,916 | 4,878 | 4,882 | (17%) | 0% |
Total Cost (excl. residential business and non-recurring items) | 4,654 | 4,478 | 4,534 | (3%) | 1% |
Administrative Expenses (incl. impact from TFRS9) | 2,003 | 2,048 | 1,994 | (0%) | (3%) |
Operating Profit | 5,564 | 5,236 | 5,270 | (5%) | 1% |
Operating Profit (excl. non-recurring items) | 5,382 | 5,236 | 5,270 | (2%) | 1% |
Net Finance Cost/Income Tax/Others | (963) | (931) | (875) | (9%) | (6%) |
Profit to Non-Controling Interest | (45) | (78) | (90) | 103% | 16% |
Profit to Parent Company | 4,556 | 4,227 | 4,305 | (6%) | 2% |
Profit to Parent Company (excl. non-recurring items) | 4,031 | 3,847 | 3,902 | (3%) | 1% |
EPS to Parent Company | 1.02 | 0.94 | 0.96 | (6%) | 2% |
EPS to Parent Company (excl. non-recurring items) | 0.90 | 0.86 | 0.87 | (3%) | 1% |
6M24 | 6M25 | YoY (%) |
20,375 | 21,516 | 6% |
943 | 970 | 3% |
3,263 | 1,095 | (66%) |
1,136 | 726 | (36%) |
25,717 | 24,308 | (5%) |
25,535 | 24,308 | (5%) |
22,272 | 23,213 | 4% |
8,832 | 8,681 | (2%) |
309 | 330 | 7% |
2,084 | 749 | (64%) |
11,224 | 9,760 | (13%) |
11,224 | 9,760 | (13%) |
9,140 | 9,011 | (1%) |
3,998 | 4,042 | 1% |
10,494 | 10,506 | 0% |
10,312 | 10,506 | 2% |
(1,686) | (1,806) | 7% |
(98) | (168) | 71% |
8,710 | 8,532 | (2%) |
7,836 | 7,749 | (1%) |
1.94 | 1.90 | (2%) |
1.75 | 1.73 | (1%) |
Total Revenue
In 2Q25, the Company had total revenue of Bt12,147mn. Excluding the residential business and one-off income in 2Q24, total revenues grew 3% YoY and 1% QoQ, thanks to solid performance of the retail business. Details of each component are as follows:
Rental & Service business reported revenues similar to 1Q25 level but increased 2% YoY mainly from solid same-store rental revenue growth driven by new experiences in the shopping mall which led to continued traffic increase YoY. Note that the amortization of Pinklao lease extension with CPNREIT has been recorded as rental & service revenues since 2Q24.
Hotel business revenues decreased 2% YoY and 16% QoQ partly due to seasonality effect and foreign tourists momentum in 2Q25. However, RevPar of Centara and GO! consistently improved 12% and 19% YoY, respectively, mainly from improving occupancy. Hilton Pattaya performance remained superior to peers.
Residential for sale business revenues decreased 75% YoY and 18% QoQ mainly due to the condominium transfer schedule. Even though the industry outlook remains challenging, the company should see improving momentum in 2H25 due to more condominium transfers.
Other income increased by 15% YoY and doubled QoQ mainly from unrealized FX gain/loss from overseas operation and other investments.
Gross profit
The Company's 2Q25 total gross profit was Bt6,778mn. Excluding the residential business, gross profit grew 6% YoY but declined 3% QoQ. The YoY improvement was from the rental and service business which saw consistent improvement in gross margin YoY. The QoQ change was mainly from the seasonality effect of shopping malls and hotels. The Company continued to solid overall gross profit margin in 2Q25 at 58%, mainly from performances of the shopping malls as well as Centara and GO! hotels (1Q25 59%; 2Q24 54%).
Operating profit
2Q25 operating profit was Bt5,270mn with operating profit margin of 43% (1Q25 43% and 2Q24 41%). Excluding the residential business and one-off income in 2Q24, operating profit increased by 10% YoY and 2% QoQ. The YoY increase was in line with gross profit and other income movement, while QoQ improvement was from lower SG&A relative to 1Q25. (SG&A to total revenues ratio was 16% in 2Q25 and 17% in 1Q25).
Net profit
The Company delivered 2Q25 core net profit of Bt3,902mn, with net profit margin of 32% (1Q25 32%; 2Q24 30%). Excluding the residential business and one-off income in 2Q24, net profit improved 10% YoY and 3% QoQ. The increase was in line with operating profit.
CAPITAL STRUCTUREAt the end of 2Q25, the Company reported an interest-bearing debt from financial institution (excluding loans from related parties) of Bt74,480mn, higher than 1Q25 by 10%, which has been the pattern in every second quarter of every year. As a result, total net interest-bearing debt to equity slightly increased from
0.58x to 0.63x but still trending lower from the previous year. The weighted average interest rate in 2Q25 was 2.80%, lower than 1Q25 level at 3.04%. The Company's financial position remained strong with an interest coverage ratio at 26.07x in 2Q25 (interest expense excludes impact from TFRS16).
Statement of Financial Position (Baht mn) | End 2Q24 | End 1Q25 | End 2Q25 | YoY (%) | QoQ (%) |
Current assets | |||||
Cash, cash equivalents and financial investments | 6,834 | 7,602 | 6,798 | (1%) | (11%) |
Trade accounts receivable | 1,947 | 1,413 | 1,368 | (30%) | (3%) |
Other current assets | 18,950 | 33,372 | 34,274 | 81% | 3% |
Total current assets | 27,731 | 42,387 | 42,440 | 53% | 0% |
Non-current assets | |||||
Investment properties | 182,605 | 187,063 | 187,933 | 3% | 0% |
Property & equipment (PP&E) | 4,792 | 4,788 | 4,848 | 1% | 1% |
Other non-current assets | 86,789 | 74,722 | 72,438 | (17%) | (3%) |
Total non-current assets | 274,185 | 266,573 | 265,218 | (3%) | (1%) |
Total assets | 301,917 | 308,960 | 307,658 | 2% | (0%) |
Current liabilities | |||||
Interest-bearing debt - 1 year | 24,146 | 18,919 | 26,722 | 11% | 41% |
Other current liabilities | 17,682 | 23,264 | 21,506 | 22% | (8%) |
Total current liabilities | 41,828 | 42,183 | 48,228 | 15% | 14% |
Non-current liabilities | |||||
Interest-bearing debt | 50,112 | 48,589 | 47,758 | (5%) | (2%) |
Other non-current liabilities | 108,372 | 104,428 | 102,938 | (5%) | (1%) |
Total non-current liabilities | 158,484 | 153,017 | 150,696 | (5%) | (2%) |
Total liabilities | 200,313 | 195,200 | 198,924 | (1%) | 2% |
Shareholders' equity | |||||
Retained earnings - unappropriated | 93,290 | 104,512 | 99,391 | 7% | (5%) |
Other shareholers' equity | 8,314 | 9,247 | 9,343 | 12% | 1% |
Total shareholders' equity | 101,604 | 113,760 | 108,734 | 7% | (4%) |
Total liabilities and equity | 301,917 | 308,960 | 307,658 | 2% | (0%) |
Financial Ratio | 2Q24 | 1Q25 | 2Q25 | YoY (Chg) | QoQ (Chg) | 6M24 | 6M25 | YoY (Chg) | |
Profitability Ratio Gross profit margin Rental and Service Business (Retail, Food Court, Office) Hotel Business Real Estate Business Operation profit margin Excluding non-recurring and non-operating items Net profit margin Excluding non-recurring and non-operating items Return on equity Excluding non-recurring and non-operating items | 54.1% 57.0% 66.1% 35.5% 41.3% 40.5% 33.8% 30.3% 18.1% 16.6% | 59.1% 60.1% 67.5% 33.5% 43.1% 43.1% 34.8% 31.6% 16.1% 15.0% | 58.1% 59.2% 64.1% 29.4% 43.4% 43.4% 35.4% 32.1% 16.7% 15.6% | 4.1% 2.2% (2.0%) (6.1%) 2.1% 2.9% 1.7% 1.8% (1.4%) (1.0%) | (1.0%) (0.9%) (3.4%) (4.1%) 0.3% 0.3% 0.7% 0.5% 0.6% 0.6% | 54.3% 56.1% 67.3% 36.1% 40.4% 40.8% 33.9% 32.8% 16.6% 15.8% | 58.6% 59.7% 66.0% 31.7% 43.2% 43.2% 35.1% 31.9% 16.7% 15.6% | 4.3% 3.5% (1.3%) (4.5%) 2.8% 2.4% 1.2% (1.0%) (1.4%) (1.0%) | |
Efficiency Ratio Return on assets Excluding non-recurring and non-operating items | 5.6% 5.1% | 5.4% 5.1% | 5.4% 5.0% | (0.2%) (0.1%) | (0.1%) (0.0%) | 5.6% 5.3% | 5.4% 5.0% | (0.2%) (0.1%) | |
Liquidity Ratio Current ratio (times) Quick ratio (times) | 0.66 0.21 | 1.00 0.21 | 0.88 0.17 | 0.22 (0.04) | (0.12) (0.04) | 0.66 0.21 | 0.88 0.17 | 0.22 (0.04) | |
Financial Policy Ratio Liabilities to equity ratio (times) Net interest-bearing debt to equity (times) Interest Coverage Ratio (times) | 1.97 0.68 20.00 | 1.72 0.53 23.80 | 1.83 0.63 26.07 | (0.14) (0.05) 6.07 | 0.11 0.10 2.26 | 1.97 0.68 20.02 | 1.83 0.63 26.07 | (0.14) (0.05) 6.07 |
Retail and Mixed-use Projects
Project | Type | Expected | Details | |
1 | DUSIT CENTRAL PARK | Mixed-use Project | ||
- Dusit Thani BANGKOK | ownership 30% | Opened Sep-2024 | 257 Rooms | |
- CENTRAL PARK | ownership 85% | 3Q25 | GLA 45,000 sqm | |
- CENTRAL PARK OFFICES | ownership 100% | 3Q25 | GLA 60,000 sqm | |
- DUSIT RESIDENCES | ownership 30% | 2026 | 400 units | |
2 | Central Krabi | Shopping Mall | 4Q25 | NLA 22,000 sqm |
3 | Central Northville | Shopping Mall | 2Q26 | NLA 45,000 sqm |
4 | Central Khonkaen Campus | Shopping Mall | 2Q26 | NLA 20,000 - 30,000 sqm |
5 | Central Phuket - New Luxury Zone Expansion | Shopping Mall | 3Q26 | NLA 10,000 - 15,000 sqm |
6 | The Central | Shopping Mall | 4Q26 | NLA 90,000-100,000 sqm |
Active Projects of Residential for Sales
Hight-Rise Projects | Launched | Transfer | Project Value (bn Baht) | Total No. of Units | |
1 | PHYLL PHAHOL 34 | Sep-18 | Nov-19 | 1.30 | 358 |
2 | ESCENT RAYONG II | Dec-20 | Nov-22 | 0.93 | 420 |
3 | ESCENT VILLE SURATTHANI | Aug-22 | 2024 | 1.11 | 459 |
4 | ESCENT VILLE SUPHANBURI | Oct-22 | May-24 | 0.70 | 328 |
5 | ESCENT VILLE CHACHOENGSAO | Oct-22 | Apr-24 | 0.66 | 362 |
6 | ESCENT TRANG | Dec-22 | 2024 | 0.88 | 378 |
7 | ESCENT PHETCHABURI | Jun-23 | 2024 | 0.45 | 196 |
8 | ESCENT NAKHON SAWAN | Jan-24 | 2025 | 1.15 | 442 |
9 | ESCENT NAKHON PATHOM | Mar-24 | 2025 | 1.07 | 425 |
10 | ESCENT BANGNA | Jun-24 | 2026 | 0.71 | 285 |
11 | ESCENT HATYAI II | Sep-24 | 2026 | 1.76 | 662 |
12 | ESCENT PHUKET | Sep-24 | 2026 | 1.46 | 513 |
13 | ESCENT UBONRATCHATHANEE 2 | Nov-24 | 2026 | 1.11 | 411 |
14 | ESCENT NAKORN SRI | Dec-24 | 2026 | 1.26 | 459 |
Low-Rise Projects | Launched | Transferred | Project Value (bn Baht) | Total No. of Units | |
1 | NIYHAM BOROMRATCHACHONNANI | Nov-18 | Feb-19 | 2.17 | 71 |
2 | ESCENT TOWN PHITSANULOK | Dec-19 | Mar-20 | 0.93 | 243 |
3 | NIRATI CHIANGRAI | Sep-20 | Oct-20 | 0.78 | 158 |
4 | NIRATI BANGNA | Oct-20 | Nov-20 | 1.21 | 153 |
5 | NIRATI DON MUEANG | Sep-21 | Oct-21 | 1.93 | 248 |
6 | ESCENT AVENUE RAYONG | Nov-21 | Jun-22 | 0.47 | 63 |
7 | BAAN NIRATI CHIANGMAI | Nov-22 | Dec-22 | 1.63 | 179 |
8 | BAAN NINYA RATCHAPHRUEK | Dec-22 | Mar-22 | 1.61 | 132 |
9 | BAAN NIRATI NAKHON SI | Aug-23 | Sep-23 | 0.71 | 79 |
10 | BAAN NIRADA RAMA 2 | Oct-23 | Jun-24 | 2.96 | 110 |
11 | BAAN NIRADA UTHAYAN-AKSA | Dec-23 | Apr-24 | 2.36 | 96 |
12 | BAAN NIRADA WONGWAN-EKKACHAI | Jan-24 | Apr-24 | 1.63 | 72 |
13 | BAAN NIRATI NAKORNPATHOM | Oct-24 | Dec-24 | 1.02 | 124 |
14 | BAAN NIRADA SRIVAREE BANGNA | Nov-24 | Dec-24 | 2.50 | 228 |
15 | BAAN NIRATI CHAENGWATTANA CHAIYAPHRUEK | Mar-25 | Y2025 | 1.72 | 119 |
16 | BAAN NIRADA CHAENGWATTANA CHAIYAPHRUEK | May-25 | Y2025 | 1.91 | 68 |