Central Pattana PLC
Management's Discussion and Analysis (MD&A) 3Q25
EXECUTIVE SUMMARY
Macroeconomics
Thai economy showed recovery sign in September. Although Bank of Thailand (BoT) anticipated Thai GDP in 3Q25 to moderate, economic activities in September picked up, driven by a rebound in manufacturing, increased foreign tourism receipts, and rising merchandise exports relative to the beginning of the third quarter. Thai tourist expenditures were also boosted during the quarter thanks to the "Thai Travel Co-Pay" campaign (July 4 - October 30, 2025). Private consumption indicators in 3Q25 also showed improvement YoY, mainly driven by durable and semi-durable goods consumption. Favorable outlook for domestic consumption in 4Q25. BoT expected manufacturing activities to pick up in October after plants resumed activities following temporary closures due to the impact of US tariff. In addition, the government stimulus programs namely 1) "Khon La Krueng Plus", the copayment scheme, of which 20 million participants receive 2,000-2,400 Baht from October 29 - December 31, 2025; and2) "Teaw Dee Mee Kuen", the measure that allows personal income tax deductions for domestic travel expenses. Individuals can deduct up to 20,000 Baht in expenses, covering accommodation and restaurants (including those outside hotels), from October 29 - December 15. The deduction for expenses in secondary provinces can be deducted at 1.5 times the amount spent.
Continued upward revision of 2025 Thai GDP growth forecasts. On October 30, 2025, the Thai Fiscal Policy Office (FPO) revised its 2025 GDP forecast upward from 2.2% to 2.4%, citing improving domestic consumption from government stimulus measures and export outlook. According to BoT, the two government stimulus programs should boost Thai GDP by 0.2-0.3%.CPN 3Q25 performance
Resilient growth in traffic, tenants' sales, and retail gross margin remained key performance drivers. Our core rental business contributed approximately 90% of total revenues and continued to deliver solid revenue growth YoY and vs 1H25 with significant YoY increase in margin. The key drivers include 1) the successful opening of Central Park in September; 2) 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; 3) efficiency enhancement initiatives including solar rooftop installations and lower electricity tariffs; and 4) well-controlled SG&A. 3Q25 all-time-high NPAT reaffirming 2H25 positive momentum. The Company delivered all-time-high reported and core profit in this quarter. 3Q25 reported profit was Bt5,424mn, growing 31%YoY. If excluding non-recurring items and the residential business, net profit grew 23% YoY and 6% QoQ, (Details of non-operating and one-off items are shown on page 3). 3Q25 residential revenues also picked up with QoQ gross margin improvement thanks to successful new project launches. We expect the upcoming festive season as well as the launch of Central Krabi shopping mall and the four residential projects in 4Q25 to reaffirm that 1) 2H25 revenues would be higher than 1H25 revenues 2) residential revenues already surpassed 2Q25 trough. OVERVIEWThe Company has 3 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 3Q25Business 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 | 18 23 1 1 43 | 956 923 84 169 2,133 | ||||||
17 23 1 1 42 | 795 822 84 169 1,870 | 3 4 7 | 161 102 263 | |||||
Community Mall | 16 | 172 | 16 | 172 | ||||
Total Retail Business | 59 | 2,305 | ||||||
Other Business Office Hotel Residential for sales - active (high-rise) Residential for sales - active (low-rise) | 8 10 15 17 | 236 1,681 rooms | 5 9 | 118 1,377 rooms | 2 1 | 35 304 rooms | 1 | 82 |
Assets under GLAND Office Residential for sales - active (low-rise) | 3 1 | 145 | 1 | 68 | 2 | 77 | ||
The Company has 43 shopping malls (18 in the Bangkok Metropolitan area, 23 in upcountry (of which 8 are in secondary provinces), 1 overseas, Mega Bangna), 16 community malls with a total NLA of 2.3 mn sqm. The Company's 3Q25 occupancy rate of shopping mall and community malls, excluding Central Park, was similar to 2Q25 and 3Q24 at 90%.
The Company has 11 office buildings for rent with a total rental area of 380,752 sqm. The occupancy rate in 3Q25, excluding Central Park, was similar to the previous quarter.
In 3Q25, the Company has a total of 10 hotels and 1,681 rooms with an average occupancy rate of 75%, similar to the previous quarter (75%) but improved from the previous year (71%), mainly from higher occupancy rate at GO! hotels.
The Company launched 2 low-rise projects, BAAN NINYA KRUNGTHEP KREETHA - MOTORWAY and BAAN NINYA KRABI in July and August, respectively. In September, the third condominium project in Phuket, PHYLL PHUKET II, was also launched. As of the end of 3Q25, total active projects were 33 (15 condominiums and 18 low-rise).
FINANCIAL PERFORMANCE 3Q25 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 | 10,835 | - | 10,835 |
Revenue from other businesses | 1,081 | - | 1,081 |
Other income | 1,643 | (1,234) | 409 |
Total Revenue | 13,558 | (1,234) | 12,324 |
Cost of rental & services | (4,354) | - | (4,354) |
Cost of other businesses | (589) | - | (589) |
Administrative expense | (1,962) | - | (1,962) |
Operating profit (loss) | 6,654 | (1,234) | 5,420 |
Share of profit from invested co. | 582 | - | 582 |
Investment income | 352 | (314) | 38 |
Interest expense | (889) | - | (889) |
Income tax | (1,201) | 310 | (891) |
Minority interest | (74) | - | (74) |
Net profit to parent co. | 5,424 | (1,238) | 4,186 |
3Q25 Non-recurring and non-operating items
Accounting impact from the payment of Rama 2 lease extension from CPNREIT included 1) gain from the transfer of additional leasable area and 2) fees related to the transaction. As a result, the Company recorded one-off other incomes of Bt987m (after tax)
The Company recognized lease receivable from financial lease with CPNREIT in 1Q20 which reflects the present value at that time. Since then, the Company has accrued interest income until partial cash payment was made in Aug 2025. In 3Q25, the Company recognized an interest income from the Central Rama 2 lease contract amounting to Bt251mn (after tax). Going forward, interest income will continue to be recognized on the remaining principal until the payment is made.
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) | 3Q24 | 2Q25 | 3Q25 | YoY (%) | QoQ (%) | 9M24 | 9M25 | YoY (%) | |
Revenue from rental & services (Retail, Food Court, Office) | 10,779 | 10,724 | 10,835 | 1% | 1% | 31,155 | 32,351 | 4% | |
Revenue from Hotel Business | 472 | 442 | 455 | (4%) | 3% | 1,415 | 1,425 | 1% | |
Revenue from Residential Business | 991 | 494 | 626 | (37%) | 27% | 4,254 | 1,722 | (60%) | |
Other Income | 41 | 486 | 1,643 | 3932% | 238% | 1,177 | 2,369 | 101% | |
Total Revenue | 12,284 | 12,147 | 13,558 | 10% | 12% | 38,000 | 37,867 | (0%) | |
Total Revenue (excl. non-recurring items) | 12,284 | 12,147 | 12,324 | 0% | 1% | 37,818 | 36,633 | (3%) | |
Total Revenue (excl. residential business and non-recurring items) | 11,292 | 11,653 | 11,698 | 4% | 0% | 33,564 | 34,911 | 4% | |
Cost of Rental and Service Income | 4,506 | 4,375 | 4,354 | (3%) | (0%) | 13,338 | 13,036 | (2%) | |
Cost of Hotel Business | 159 | 159 | 154 | (3%) | (3%) | 467 | 484 | 4% | |
Cost of Residential Business | 627 | 349 | 435 | (31%) | 25% | 2,712 | 1,183 | (56%) | |
Total Cost | 5,292 | 4,882 | 4,943 | (7%) | 1% | 16,516 | 14,703 | (11%) | |
Total Cost (excl. non-recurring items) | 5,292 | 4,882 | 4,943 | (7%) | 1% | 16,516 | 14,703 | (11%) | |
Total Cost (excl. residential business and non-recurring items) | 4,665 | 4,534 | 4,508 | (3%) | (1%) | 13,805 | 13,520 | (2%) | |
Administrative Expenses (incl. impact from TFRS9) | 1,986 | 1,994 | 1,962 | (1%) | (2%) | 5,985 | 6,004 | 0% | |
Operating Profit | 5,005 | 5,270 | 6,654 | 33% | 26% | 15,499 | 17,160 | 11% | |
Operating Profit (excl. non-recurring items) | 5,005 | 5,270 | 5,420 | 8% | 3% | 15,317 | 15,926 | 4% | |
Net Finance Cost/Income Tax/Others | (807) | (875) | (1,155) | 43% | 32% | (2,492) | (2,961) | 19% | |
Profit to Non-Controling Interest | (73) | (90) | (74) | 2% | (18%) | (171) | (242) | 42% | |
Profit to Parent Company | 4,126 | 4,305 | 5,424 | 31% | 26% | 12,836 | 13,956 | 9% | |
Profit to Parent Company (excl. non-recurring items) | 3,746 | 3,902 | 4,186 | 12% | 7% | 11,582 | 11,935 | 3% | |
EPS to Parent Company | 0.92 | 0.96 | 1.21 | 31% | 26% | 2.86 | 3.11 | 9% | |
EPS to Parent Company (excl. non-recurring items) | 0.83 | 0.87 | 0.93 | 12% | 7% | 2.58 | 2.66 | 3% |
Total Revenue
In 3Q25, the Company had total revenue of Bt12,324mn. Excluding the residential business and one-off incomes in this quarter, total revenues grew 4% YoY and slightly higher than 2Q25 level, thanks to solid performance of the existing and new retail projects as well as improved residential transfers relative to the previous quarter. Details of each component are as follows:
Rental & Service business revenues increased 1% YoY and QoQ. Despite many projects under renovation, same-store rental revenue growth remained solid in the range of mid-single digit YoY mainly driven by consistent YoY traffic increase following the introduction of new brands. The success of the Central Park project opening also contributed to positive QoQ momentum, despite the rainy season which usually resulted in lower traffic QoQ.
Hotel business revenues decreased 4% YoY but improved 3% QoQ. RevPar of Centara and GO! consistently improved by 4% and 19% YoY, respectively, mainly from improving occupancy. The YoY change was mainly from Hilton Pattaya, of which the performance remained superior to peers but was impacted by weakening foreign tourists momentum.
Residential for sale business revenues decreased 37% YoY but increased 27% QoQ. The Company already saw the trough of the residential transfers in 2Q25 thanks to new project launches during 3Q25 and recovery of existing low-rise projects' transfers, resulting in improved QoQ momentum of presale and transfers.
Other income increased from Bt41mn in 3Q24 to Bt409mn in 3Q25 but lower 16% QoQ mainly from unrealized FX gain/loss from overseas operation and other investments.
Gross profit
The Company's 3Q25 total gross profit was Bt6,972mn. Excluding the residential business, gross profit grew 3% YoY and 2% QoQ. The YoY improvement was from the rental and service business which saw consistent improvement in gross margin YoY. The QoQ improvement was mainly from lower energy costs of shopping malls, while hotels and residential businesses also saw gross margin improvement. The Company continued to deliver solid overall gross profit margin in 3Q25 at 59% (2Q25 58%; 3Q24 57%).
Operating profit
3Q25 operating profit was Bt5,420mn with operating profit margin of 44% (2Q25 43% and 3Q24 41%). Excluding the residential business and one-off incomes, operating profit increased by 16% YoY and 2% QoQ. The changes were in line with gross profit and other income movement (SG&A to total revenues ratio was 16% in 3Q25 and 2Q25).
Net profit
The Company delivered 3Q25 core net profit of Bt4,186mn, with net profit margin of 34% (2Q25 32%; 3Q24 30%). Excluding the residential business and one-off incomes, net profit improved 23% YoY and 6% QoQ. The increase was in line with operating profit.
CAPITAL STRUCTUREAt the end of 3Q25, the Company reported an interest-bearing debt from financial institutions (excluding loans from related parties) of Bt63,449mn, decreased 12%YoY and 15%QoQ due to the repayment during the quarter. As a result, total net interest-bearing debt to equity decreased from 0.63x in 2Q25 to 0.50x. The weighted average interest rate in 3Q25 was 2.95%, slightly increased from 2.80% in 2Q25. The Company's financial position remained strong with an interest coverage ratio at 29.5x in 3Q25 (interest expense excludes impact from TFRS16).
Statement of Financial Position (Baht mn) | 3Q24 | 2Q25 | 3Q25 | YoY (%) | QoQ (%) |
Current assets | |||||
Cash, cash equivalents and financial investments | 6,403 | 6,798 | 7,045 | 10% | 4% |
Trade accounts receivable | 1,701 | 1,368 | 1,385 | (19%) | 1% |
Other current assets | 31,884 | 34,274 | 21,899 | (31%) | (36%) |
Total current assets | 39,988 | 42,440 | 30,328 | (24%) | (29%) |
Non-current assets | |||||
Investment properties | 182,859 | 187,933 | 189,336 | 4% | 1% |
Property & equipment (PP&E) | 4,805 | 4,848 | 4,966 | 3% | 2% |
Other non-current assets | 75,336 | 72,438 | 75,019 | (0%) | 4% |
Total non-current assets | 263,000 | 265,218 | 269,320 | 2% | 2% |
Total assets | 302,988 | 307,658 | 299,648 | (1%) | (3%) |
Current liabilities | |||||
Interest-bearing debt - 1 year | 13,858 | 26,722 | 17,136 | 24% | (36%) |
Other current liabilities | 20,330 | 21,506 | 18,717 | (8%) | (13%) |
Total current liabilities | 34,188 | 48,228 | 35,852 | 5% | (26%) |
Non-current liabilities | |||||
Interest-bearing debt | 57,970 | 47,758 | 46,314 | (20%) | (3%) |
Other non-current liabilities | 104,539 | 102,938 | 102,602 | (2%) | (0%) |
Total non-current liabilities | 162,510 | 150,696 | 148,915 | (8%) | (1%) |
Total liabilities | 196,698 | 198,924 | 184,768 | (6%) | (7%) |
Shareholders' equity | |||||
Retained earnings - unappropriated | 97,122 | 99,391 | 105,493 | 9% | 6% |
Other shareholers' equity | 9,168 | 9,343 | 9,388 | 2% | 0% |
Total shareholders' equity | 106,290 | 108,734 | 114,881 | 8% | 6% |
Total liabilities and equity | 302,988 | 307,658 | 299,648 | (1%) | (3%) |
Financial Ratio | 3Q24 | 2Q25 | 3Q25 | YoY (Chg) | QoQ (Chg) |
Profitability Ratio | |||||
Gross profit margin | 56.8% | 58.1% | 58.5% | 1.7% | 0.4% |
Rental and Service Business (Retail, Food Court, Office) | 58.2% | 59.2% | 59.8% | 1.6% | 0.6% |
Hotel Business | 66.4% | 64.1% | 66.1% | (0.3%) | 2.0% |
Real Estate Business | 36.7% | 29.4% | 30.6% | (6.2%) | 1.2% |
Operation profit margin | 40.7% | 43.4% | 49.1% | 8.3% | 5.7% |
Excluding non-recurring and non-operating items | 40.7% | 43.4% | 44.0% | 3.2% | 0.6% |
Net profit margin | 33.6% | 35.4% | 40.0% | 6.4% | 4.6% |
Excluding non-recurring and non-operating items | 30.5% | 32.1% | 34.0% | 3.5% | 1.8% |
Return on equity | 17.3% | 16.7% | 16.9% | (0.4%) | 0.3% |
Excluding non-recurring and non-operating items | 15.8% | 15.6% | 15.1% | (0.7%) | (0.5%) |
Efficiency Ratio | |||||
Return on assets | 5.6% | 5.4% | 6.0% | 0.4% | 0.6% |
Excluding non-recurring and non-operating items | 5.1% | 5.0% | 5.3% | 0.2% | 0.3% |
Liquidity Ratio | |||||
Current ratio (times) | 1.17 | 0.88 | 0.85 | (0.32) | (0.03) |
Quick ratio (times) | 0.24 | 0.17 | 0.24 | 0.00 | 0.07 |
Financial Policy Ratio | |||||
Liabilities to equity ratio (times) | 1.85 | 1.83 | 1.61 | (0.24) | (0.22) |
Net interest-bearing debt to equity (times) | 0.62 | 0.63 | 0.50 | (0.12) | (0.13) |
Interest Coverage Ratio (times) | 20.51 | 26.07 | 29.52 | 9.01 | 3.46 |
9M24 | 9M25 | YoY (Chg) |
55.1% | 58.6% | 3.4% |
57.2% | 59.7% | 2.5% |
67.0% | 66.0% | (0.9%) |
36.3% | 31.3% | (5.0%) |
40.8% | 45.3% | 4.5% |
40.7% | 43.5% | 2.7% |
33.8% | 36.9% | 3.1% |
32.7% | 32.6% | (0.1%) |
15.0% | 16.9% | (0.4%) |
13.7% | 15.1% | (0.7%) |
4.5% | 6.0% | 0.4% |
4.1% | 5.3% | 0.2% |
0.52 | 0.85 | (0.32) |
0.16 | 0.24 | 0.00 |
2.04 | 1.61 | (0.24) |
0.85 | 0.50 | (0.12) |
18.16 | 29.52 | 9.01 |
*Interest Exp excl. impact from TFRS16
Summary of future projects under constructionRetail and Mixed-use Projects
Project | Type | Expected | Details | |
1 | Central Krabi | Shopping Mall | 24 October 2025 | NLA 22,000 sqm |
2 | Central Northville | Shopping Mall | 2Q26 | NLA 45,000 sqm |
3 | Central Khonkaen Campus | Shopping Mall | 2Q26 | NLA 20,000 - 30,000 sqm |
4 | Central Phuket - New Luxury Zone Expansion | Shopping Mall | 3Q26 | NLA 10,000 - 15,000 sqm |
5 | 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 | 1.3 | 358 |
2 | ESCENT RAYONG II | Dec-20 | Nov-22 | 0.9 | 420 |
3 | ESCENT VILLE SURATTHANI | Aug-22 | Sep-24 | 1.1 | 459 |
4 | ESCENT VILLE SUPHANBURI | Oct-22 | May-24 | 0.7 | 328 |
5 | ESCENT VILLE CHACHOENGSAO | Oct-22 | Apr-24 | 0.7 | 362 |
6 | ESCENT TRANG | Dec-22 | Nov-24 | 0.9 | 378 |
7 | ESCENT PHETCHABURI | Jun-23 | Nov-24 | 0.5 | 196 |
8 | ESCENT NAKHON SAWAN | Jan-24 | 2025 | 1.2 | 442 |
9 | ESCENT NAKHON PATHOM | Mar-24 | 2025 | 1.1 | 425 |
10 | ESCENT BANGNA | Jun-24 | 2026 | 0.7 | 285 |
11 | ESCENT HATYAI II | Sep-24 | 2026 | 1.8 | 662 |
12 | ESCENT PHUKET | Sep-24 | 2026 | 1.5 | 513 |
13 | ESCENT UBONRATCHATHANEE 2 | Nov-24 | 2026 | 1.1 | 411 |
14 | ESCENT NAKORN SRI | Dec-24 | 2026 | 1.3 | 459 |
15 | PHYLL PHUKET 2 | Sep-25 | 2027 | 1.8 | 393 |
Low-Rise Projects | Launched | Transferred | Project Value (bn Baht) | Total No. of Units | |
1 | NIYHAM BOROMRATCHACHONNANI | Nov-18 | Feb-19 | 2.2 | 71 |
2 | ESCENT TOWN PHITSANULOK | Dec-19 | Mar-20 | 0.9 | 243 |
3 | NIRATI CHIANGRAI | Sep-20 | Oct-20 | 0.8 | 158 |
4 | NIRATI BANGNA | Oct-20 | Nov-20 | 1.2 | 153 |
5 | NIRATI DON MUEANG | Sep-21 | Oct-21 | 1.9 | 248 |
6 | ESCENT AVENUE RAYONG | Nov-21 | Jun-22 | 0.5 | 63 |
7 | BAAN NIRATI CHIANGMAI | Nov-22 | Dec-22 | 1.6 | 179 |
8 | BAAN NINYA RATCHAPHRUEK | Dec-22 | Mar-22 | 1.6 | 132 |
9 | BAAN NIRATI NAKHON SI | Aug-23 | Sep-23 | 0.7 | 79 |
10 | BAAN NIRADA RAMA 2 | Oct-23 | Jun-24 | 3.0 | 110 |
11 | BAAN NIRADA UTHAYAN-AKSA | Dec-23 | Apr-24 | 2.4 | 96 |
12 | BAAN NIRADA WONGWAN-EKKACHAI | Jan-24 | Apr-24 | 1.6 | 72 |
13 | BAAN NIRATI NAKORNPATHOM | Oct-24 | Dec-24 | 1.0 | 124 |
14 | BAAN NIRADA SRIVAREE BANGNA | Nov-24 | Dec-24 | 2.5 | 228 |
15 | BAAN NIRATI CHAENGWATTANA CHAIYAPHRUEK | Mar-25 | Jun-25 | 1.7 | 119 |
16 | BAAN NIRADA CHAENGWATTANA CHAIYAPHRUEK | May-25 | Sep-25 | 1.9 | 68 |
17 | BAAN NINYA KRUNGTHEP KREETHA-MOTOWAY | Jul-25 | Jul-25 | 2.7 | 185 |
18 | BAAN NINYA KRABI | Aug-25 | 2025 | 1.6 | 100 |