IMPACT REIT Unveils Year-End High Season Event - Sky Entrance Project Nearly 80% Complete, Targeting 20-25% Revenue and Dividend Growth by the End of 2024/2025

Stocks News Friday December 6, 2024 09:30 —PRESS RELEASE LOCAL

IMPACT REIT Unveils Year-End High Season Event - Sky Entrance Project Nearly 80% Complete, Targeting 20-25% Revenue and Dividend Growth by the End of 2024/2025

IMPACT REIT revealed that the year-end event season was proving to be highly dynamic, with flagship events fully booked and concert venues experiencing overwhelming reservations extending into next year. As a result, the REIT is confident in projecting a strong performance for the current year, with a targeted revenue growth of 20-25%, along with a corresponding increase in dividend payouts for unitholders. At the same time, the Sky Entrance project, which will connect to the Pink Line Skytrain, has already reached 77% construction completion and is expected to be finished by February next year. This development will simplify travel and support the ongoing expansion of new customer bases in 2025/2026. The company is also preparing to launch roadshows focusing on international markets.

Wanphen Mungpiensakul, Managing Director of RMI Co., Ltd., the REIT manager for IMPACT Growth REIT - the largest exhibition and convention center in Thailand and Asia - shared an optimistic outlook for the MICE industry and tourism in the latter half of this year. The year-end high season for events and concerts in Q3 of 2024/2025 (October - December) is expected to feature a series of large-scale events, including the 41st Motor Expo, Baan Lae Suan Living Festival 2024, DronTech, Thailand Space Week, and Baby & Kids Best Buy. Concert bookings, both domestic and international, are fully booked and extend well into next year.

In terms of asset management, the REIT has been modernizing its spaces and introducing new experiences to both retain existing clients and attract new ones. These improvements are guided by sustainability principles. Renovation projects that have been completed include the IMPACT Common Space, Thai Thai Food Court, and Sky Kitchen Premium Food Court.

Additionally, the Sky Entrance project - a bridge connecting the Pink Line Skytrain, Muang Thong Thani extension and the IMPACT Challenger - is 77% complete. The project is expected to finish by February 2025, aligning with the Pink Line Skytrain, Muang Thong Thani extension, which is slated to begin operations in May-June next year. This will improve travel convenience and attract new customers. At the same time, plans for investing in new assets are being carefully evaluated to maximize returns for unitholders.

Building on the strong performance in the first half of the year, IMPACT REIT is confident that its overall year-end performance for 2024/25 (fiscal year ending March 31, 2025) will show a growth of approximately 20-25% compared to the previous year's total revenue around 1,752 million baht. In line with this, the dividend payment policy for unitholders is projected to increase by a similar 20-25%, with an expected average occupancy rate of 37-40%.

IMPACT REIT has a dividend payment policy of distributing 90% of adjusted net profit to unitholders. In the first quarter of 2024/25, the REIT paid a dividend of 0.22 baht per unit, marking the highest ever recorded for the first quarter. The board of directors has approved an interim dividend of 0.11 baht per unit for the second quarter of 2024/25, to be paid on December 13, 2024. This brings the total dividend for the first half of the year to 0.33 baht per unit.

Looking ahead to 2025/26, the MICE (Meetings, Incentives, Conventions, and Exhibitions) sector is expected to recover to near pre-COVID levels, driven by favorable economic conditions and a growing international customer base. Notably, IMPACT Arena is poised to continue hosting large-scale events, particularly in the Entertainment sector, with concerts and music festivals showing strong growth. Incentive tourism is also seeing positive trends, with both domestic and international organizations continuing to organize events. Discussions are underway for the Global Convention sector, with further confirmations expected.

To expand its international customer base, IMPACT REIT plans to conduct roadshows and trade shows, with a particular focus on the rapidly growing Chinese market. Additionally, the REIT is targeting new markets in India, Vietnam, and South Korea.

IMPACT REIT recently reported its performance for the first half of 2024/2025 (April - September 2024), with total revenue of 1,058.4 million baht, reflecting a 29.6% increase. Net profit reached 559.6 million baht, a 47.8% rise compared to 378.6 million baht in the same period of last year. The average occupancy rate for the total area was 39.3%, with an average rental rate of 84 baht per square meter. Customer distribution during the first six months was as follows: 45% from the private sector, 28% from the government, and 27% from international customers.

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