AXTRART, a Leading Real Estate Investment Trust, Debuts on the Stock Exchange with a Commitment to Sustainable Growth

AXTRART, a Leading Real Estate Investment Trust, Debuts on the Stock Exchange with a Commitment to Sustainable Growth

Axtra Future City Freehold and Leasehold Real Estate Investment Trust (AXTRART) has officially commenced trading on the Stock Exchange of Thailand. This milestone follows its successful conversion from Lotus’s Retail Growth Freehold and Leasehold Property Fund (LPF), a strategic move aimed at unlocking sustainable growth opportunities. AXTRART holds a strong market position, listed as one of the top four in Thailand’s PF&REIT index, with total assets exceeding THB 32,000 million. The trust is committed to delivering consistent long-term returns to its unitholders.

Mr. Sarnthor Mudhasakul, Managing Director of Axtra Future City Property REIT Co., Ltd, the REIT manager of AXTRART, stated, “Following the transfer of assets and liabilities from LPF to AXTRART on 26 November 2024, AXTRART has secured a prominent position within Thailand’s Property Fund & REIT (PF&REIT) index, ranking among the top four by market capitalization. This achievement is attributed to investments in 23 Lotus’s retail locations across prime areas nationwide, encompassing over 340,000 sq.m. of leasable space with a total value exceeding THB 32,000 million. AXTRART is managed by Axtra Future City Property REIT Co., Ltd. (AXTRARM), a specialist in retail property management and investment.”

AXTRART began trading on the Stock Exchange of Thailand on 12 December 2024. Existing LPF unitholders recorded on the register at the unit transfer suspension date received AXTRART units at a 1:1 exchange rate, totaling 2,337,282,928 units.

The conversion from a property fund to a REIT reduces expenses related to rights registration and legal transactions, ultimately increasing returns for unitholders. Importantly, AXTRART has a dividend policy of distributing dividends no less than four times per year, at a rate of no less than 90% of adjusted net profit for the fiscal year. Key advantages of AXTRART post-conversion include opportunities for further investment both domestically and internationally, focusing on high-quality retail properties in strategic locations, which offers significant growth potential. The REIT also benefits from higher borrowing capacity compared to the property fund, at 35% of total assets (60% with an Investment Grade credit rating), further enhancing opportunities for portfolio expansion and increased returns. Furthermore, the REIT’s internationally recognized management structure enhances credibility and attracts both domestic and international investors.

AXTRART has consistently generated over THB 2,800 million in annual rental income, with THB 1,461 million generated in the first half of 2024. The REIT currently manages a portfolio of 23 Lotus’s shopping centers, comprising 80% freehold and 20% leasehold properties, with a total leasable area of over 340,000 sq.m. The portfolio includes:

• 14 developments with land and building ownership: Srinakarin, Krabi, Prachachuen, Rangsit Klong 7, Thungsong, Sing Buri, Pranburi, Mahachai, Mae Sai, Ranong, Phuket, Salaya, Nakhon Si Thammarat, and Navanakorn.
• 2 developments with partial land and building ownership and land lease rights: Samui and Phitsanulok.
• 6 developments with building ownership and land lease rights: Amata Nakorn, Phetchabun, Lam Luk Ka Klong 6, Sena, Rangsit-Nakhon Nayok, and Bang Pu.
• 1 development with land and building lease rights: Rama 1.

“The conversion from LPF to AXTRART not only enhances potential returns for investors but also provides an opportunity to participate in the growing retail sector, driven by economic and tourism stimulus measures. Our strategically located assets mitigate renewal risks, generate stable income, and offer potential for future rental increases and expansion,” Mr. Sarnthor concluded.

Investors and interested parties can find more information at www.axtrart.com.