Ananda Development announced another year of record presales revenue for both condominiums and housing during 2015.
In a statement the developer said it generated THB 26.23 billion in presales during 2015, an increase of 26 percent from 2014, and also setting a new record year for the company. The company also saw new records for both condominium presales at THB 22.26 billion and housing at THB 3.96 billion.
Profit for the full year was THB 1.20 billion, a decrease of 7 percent from the profit of THB 1.30 billion in 2014 that was due, in part, to the costs associated with the record amount of new projects launched through the year.
Commenting on the level of presales for the year Ted Thirapatana, Chief Business Development Officer for Ananda, said: “By achieving pre-sales growth of 26 percent for the year we exceeded all our expectations and demonstrated the strong demand for affordable, quality units near mass-transit stations. We also showed the increased recognition by consumers of the value of condominiums located near mass-transit stations, and the value of the Ananda brand as being the clear leader in the market.”
Muntana Aue-Kitkarjorn, Chief Financial Officer of Ananda Development, said: “Ananda Development is pleased to have achieved record annual presales in 2015 while maintaining the strong financial discipline that has seen selling costs as a percentage of presales fall by approximately a third in the last two years.
“This discipline has also resulted in administration costs as a percentage of projects under development also falling by about a third in the same period, which bodes well for future profitability as transfers are expected to increase rapidly as a result of investments made since the IPO while we have successfully controlled costs.”
Chanond Ruangkritya, Chief Executive Officer of Ananda, added: “We are delighted to have achieved record pre-sales for the year, despite the economic headwinds, and are pleased to have continued our strong discipline in controlling costs.
“Ananda is not only the leader in Bangkok mass-transit living, but due to a higher consistent level of sales than any other developer, has been the number one seller of condominiums in the whole of Thailand over the last two years.”
On the subject of the 2016 Business Plan he explained: “Although our market of mass-transit condominiums continues to demonstrate strong demand, we began the year with a cautious plan due to continuing economic uncertainty, particularly with regard to consumer debts and China, although we are ready to increase if we see signs of rebound.
“This year is the beginning of an exciting period for Ananda as we enter what we refer to as our “Harvest Period”, which will see our transfers almost triple between 2015 and 2018 – including a near 40 percent increase in 2016 to THB 13.4 billion, including Ananda’s share of joint venture projects.
“We have backlog to be transferred in 2016 of THB 10.8 billion, including Mitsui’s share of joint ventures and THB 8.7 billion including Ananda’s share alone which represents 65 percent of our annual transfer target.
“We are finally about to see the investment made after the IPO come through as transfers when we expect to see transfers grow much more rapidly from 2016 onwards as buildings already launched and sold begin to transfer. We have five condominium buildings finishing construction and beginning to transfer in 2016.”
He continued, “Due mainly to our capital investment cycle, the launch total will be reduced to around TH 22 billion for the year, comprising nine new condominium projects worth THB 18.7 billion and three new housing projects worth THB 3.3 billion. Our total presales target for the year is around THB 21 billion, mostly due to the lower launch total.”
