The rise in book value of SHREITs 3 Southeast-Asia-based properties to USD 143m underpins strong asset selection policy and asset management of quality assets.

Stocks and Financial Services Press Releases Monday February 11, 2019 11:08
Bangkok--11 Feb--MT Multimedia

Independent appraisal firms appraised the total book value of SHREIT's hotel properties in Southeast Asia as at the end of 2018 at USD 143.2 million, up 9.6% from the investment value as at SHREIT's inception and 3.6% from the investment value as at the end of 2017 (as stated in the financial statements). The appraised value reflects the assets' defensive and growth qualities and the REIT manager's asset selection policy, with strong capabilities in originating excellent assets in high growth and gateway locations in the Southeast Asian markets The returns offered by SHREIT at THB 0.5997 per unit for the 10-month period ending 31 October 2018 also means that the REIT has become a top hospitality REIT on SET in terms of returns on investment.

Mr Patan Somburanasin, Managing Director of Strategic Property Investors (SPI), an independent professional REIT management firm and the manager of Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust (SHREIT), revealed that for year 2018, SHREIT has appointed the independent appraisers of the assets in its investment portfolio: KJPP Susan Widjojo & Rekan in association with VPC Asia Pacific Cluttons (by Thai Property Appraisal Lynn Philips Co., Ltd.) for Pullman Jakarta Central Park in Indonesia and Savills (Thailand) Limited (by Nexus Property Consultants Co., Ltd.) for Capri by Fraser and IBIS Saigon South in Vietnam.

As of 31 December 2018, the combined appraised value of SHREIT's three assets stood at USD 143.2 million, an increase by 9.6% from the investment value of USD 130.7 million as at SHREIT's inception, or an increase by 3.6% from the investment value of USD 138.2 million based on 2017 financial statements. This reflects the high quality of the portfolio, which is located in countries enjoying high economic growth and booming tourism. The REIT manager has also undertaken significant asset enhancement initiatives which have contributed to the valuation increase and which should continue to be realized in future years.

So far, SHREIT has produced robust constant returns. For the 10-month period until October 2018, it has paid the unitholders a total of THB 0.5997 per unit, making it a top hospitality REIT on the Stock Exchange of Thailand (SET) in terms of returns on investment and highlighting the REIT's prime quality.

"As REIT manager, we adopted and rigorously implemented an asset selection policy that focuses on maintenance of a geographically diversified range of great hotel properties in the region that attract a variety of customers. We did that to maximize the REIT's capacity to tap the high growths being fueled by tourism expenditures and create outstanding returns for all unitholders", he said.

SHREIT invests indirectly through ownership of at least 99% shares in the companies that have extendable freehold or leasehold rights in hotel properties. It has existing hotel management agreements with internationally recognized hotel operators such as Fraser Hospitality and Accor. SHREIT holds an extendable freehold right in Pullman Jakarta Central Park in Indonesia as well as leasehold rights in the land and freehold rights in the building of the two hotels in Vietnam, which are Capri by Fraser and IBIS Saigon South.

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