One of main strategies of WHA Premium Growth Real Estate Investment Trust (“WHART”) is to stabilize growth with diversification. We always believe that diversification is the key factor and protection against unusual events, turbulences or downturns that may happen and will get us through with minimal impact. Several unusual incidents and turbulences occurred in the Year 2020 have proven that the risk diversification strategy of WHART is on the right direction.
The COVID-19 Pandemic and economic / political instability have severely impacted business industry not only in Thailand, but also the globe. However, with diversification-oriented, the impact to WHART operation is very minimal as the Trust portfolio is well-diversified in term of tenant industry and the Trust also invests in growing industries.
E-commerce, FMCG, and logistics provider are major industries of WHART, and these 3 industries have been growing during this uncertainty. Some industries may have faced difficulties but, compared to overall portfolio, the proportion is very least.
WHART has managed to maintain the performance on both financial and operating perspectives. Total revenue and net investment gain have increased from the previous year. The Trust has maintained the average occupancy rate at not less than 90 percent (one of the highest in industrial REIT in Thailand). These achievements represent managerial ability and quality of the invested assets. As a result, WHART can be able to pay the benefit distribution and capital reduction to trust unitholders on a regular basis.
WHART also successfully completed the 5 th Capital Increase for investing in 3 additional projects with total building space of 128,789 square meters and total value of Baht 3,234 million. The assets are all located in prime logistics locations in Bangna-Trad and Eastern Economic Corridor area (EEC) which we believe to create stable revenue in long term. Commercial-wise, tenants for these assets are multi-national firms from various growing industries with long-term lease agreement which improves the diversification of portfolio.
As a result of the 5 th Capital Increase, the asset value of WHART has increased to Baht 42,595 million by the end of 2020 which makes WHART to be one of biggest industrial REITs in distribution center, warehouse and factory. The total building area under management is increased to 1.4 million square meters. Locations of investment properties and business industry of tenants will also be better distributed. Forward looking to the Year 2021, the Trust will continuously seek for investment opportunities on potential assets to keep growing and generating stable income.
Lastly, on behalf of the Board of Directors and executives of WHA Real Estate Management Company Limited in a capacity of REIT Manager, we would like to extend our gratitude to all unitholders for your support to the WHART. We promise that we manage WHART with our best efforts to ensure the highest benefits to all unit holders.
WHA Real Estate Management Company Limited