20190508-Futurepf-Ar2018-En.Pdf
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Part 1: Summary of Fund Information 1 Part 2: The Fund’s Operation 5 1. Fund Information 6 2. Policy, Business Overview and How the Fund Seek Benefit 6 3. Retail Market Overview 19 4. The Risk Associated with Investing in the Fund 23 5. Legal disputes 24 6. Other Important Information 24 Part 3: Management and Good Governance 25 7. Details of Investment Units 26 8. Management Structure 32 9. Corporate Governance 46 10. Social Responsibility 52 11. Internal Controls and Risk Management 55 12. Measures to Prevent Conflict of Interests 57 Part 4: Financial Position and Performance 61 13. Key Financial Information 62 14. Management Discussion and Analysis: MD&A 72 15. Fund Supervisor Report 78 Attachment Auditor Report and Financial Statement 81 PART 1 Summary of Fund Information Part 1 : Summary of Fund Information Financial Highlight 2016 2017 2018 Balance Sheet Total assets THB Million 7,460.0 7,342.7 7,239.6 Interest bearing debt THB Million 270.0 100.0 0.0 Net assets THB Million 6,771.2 6,815.4 6,813.4 Profit and Loss statement Total income THB Million 987.4 1,027.2 1,027.3 Total expense THB Million 206.9 203.4 203.8 Net investment income THB Million 780.5 823.9 823.6 Net unrealized gain from investment valuation THB Million (3.6) (29.7) (93.7) Increase in net assets from operations THB Million 777.0 794.1 729.8 Trading Statistics Closing price THB / Unit 23.10 21.50 22.60 Highest price THB / Unit 27.00 23.60 23.00 Lowest price THB / Unit 19.70 19.70 20.50 Market capitalization THB Million 12,233.0 11,385.7 11,968.2 Distribution to Unitholders Dividend payment THB / Unit 1.330 1.402 1.402 2 Annual Report 2018 For Period from 1 January 2018 to 31 December 2018 TOTAL INCOME 1,027 1,027 1,040 1,020 987 1,000 980 945 941 960 940 920 900 880 2014 2015 2016 2017 2018 DIVIDEND PAYMENT 1.450 1.402 1.402 1.400 1.330 1.350 1.300 1.248 1.248 1.250 1.200 1.150 2014 2015 2016 2017 2018 Overview of the Fund’s performance As of 31 Dec 2018, Net Asset Value (NAV) was THB 6,813.4 million baht, equivalent to THB 12.8660 per unit. In Y2018, Fund’s performance was similar to last year because total income and total expenses unchanged from Y2018, recorded of THB 1,027.3 million baht and THB 203.8 million baht, respectively. Thus net investment income was THB 823.5 million baht. Future Park Leasehold Property Fund : FUTUREPF 3 Total Expenses as Collected from Property Fund For the period from 1 January 2018 to 31 December 2018 Amount % of Fund's Direct Expense (Thousand Baht) Net Assets Value Property Management Fee 95,344.94 1.40 Property Marketing And Administrative Expenses 60,265.75 0.88 Property Tax 21,990.39 0.04 Management Fee 9,626.70 0.32 Insurance Premium 7,153.13 0.11 Interest Expense 2,646.34 0.14 Registrar Fee 1,985.77 0.03 Trustee Fee 1,782.72 0.03 Professional Fee 1,205.55 0.03 Other Expenses 1,755.80 0.01 Total Expenses 203,757.09 2.99 Average Net Asset: Baht 6,821,928,722.84 4 Annual Report 2018 For Period from 1 January 2018 to 31 December 2018 PART 2 T he Fund’s Operation Future Park Leasehold Property Fund : FUTUREPF 5 Part 2 : The Fund’s Operation 1. Fund Information 1.1 Name, Type, Fund Capital and Term of Fund Fund Name Future Park Leasehold Property Fund (“FUTUREPF”) Fund Type Closed-end Property fund Fund Capital THB 6,233,161,000 (Six billion, Two Hundred and Thirty-Three Million, One Hundred and Sixty-One Thousand Baht) Term of Fund No specific term 1.2 Name of Management Company and Fund Supervisor Management Company BBL Asset Management Company Limited Fund Supervisor Krung Thai Bank Public Corporation Limited 2. Policy, Business Overview and How transferring and/or disposing of immovable the Fund Seek Benefit property invested or acquired by the Fund, and by improving, changing, developing and/or 2.1 Visions, Objectives, Targets and Operating disposing of the various properties invested or Strategies acquired by the Fund, whether by the granting of Visions, Objectives and Targets a lease and/or sale and/or by other means relevant The purposes of the Fund are to mobilize and necessary to make use of the immovable funds from the investors, natural persons of Thai properties in return for income and yields for the and foreign nationals and local and overseas Fund and its unitholders, including to invest in juristic persons which are used to purchase and/ other properties and/or securities and/or to acquire or take on lease immovable properties. The Fund other fruits by any other means stipulated by the will accept the transfer of ownership and/or lease Securities Law and/or other relevant laws. rights and derive benefits from the immovable properties by letting out on lease or sublease, 6 Annual Report 2018 For Period from 1 January 2018 to 31 December 2018 1. Investment from the initial offering Land Title deed (24 November 2006) no. 310 and 92118 As of 24 November 2006, the Fund Lease Plpatanasin Leases out has invested in the rights to the lease of Future Park Rangsit Project which is a completed commercial Rangsit Plaza center built on land title deeds no. 310 and 92118 with total land area of 108 rais, 1 ngan, 67.5 square Owner of Bulldings wah (Pipatanasin Co., Ltd. owns the lands and has entered into a land lease agreement with Rangsit Plaza Co., Ltd. which owns the buildings). The Fund has invested in the lease rights for parts of the buildings where there are not subject to long-term Leases Part Rangsit Plaza leases with up-front payments, with total usable of Bullding leases out area of 52,573.09 square meters and rights to FUTUREPE generate income from the common areas totaling 48,190.51 square meters including the exterior 2. Investment from the 1st Capital walls of Future Park Rangsit buildings. The income Increase (26 December 2012) generation shall be in the forms of rent, provision The Management Company has of service, giving rights to the use of space or capitalized funds to invest in the following other forms for generating income. The term of the properties lease rights to the space is 20 years from 24 November 2006 to 31 December 2026. The Fund 1. The extension of the lease rights had initially invested and entered into a lease of the Future Park Rangsit Project with total area agreement with Rangsit Plaza Co., Ltd. covering of 53,065.66 square meters and rights to the use 52,573.09 square meters of usable area and parts of parts of the common areas of 47,697.94 square of Future Park Rangsit Project that could generate meters which include 8,276.88 square meters of income of 7,582.79 square meters (from the total income-generating common area and rights to common area of 48,190.51 square meters as seek benefits for the exterior walls of the Future per the lease rights agreement with Rangsit Plaza Park Rangsit Project buildings and other assets Co., Ltd. signed at the Land Department on 24 that are related and necessary for the use of the November 2006. The income generating area is buildings for generating income for another 15 totaling 60,155.88 square meters. years (from 2027 to 2041) and 2. The additional lease rights of the building of Future Park Rangsit Project that are not subject to long-lease agreements with up-front payments with Rangsit Plaza Co., Ltd. totaling 3,840.08 square meters for a period of 29 years from the signing date of related agreements to the year 2041. Future Park Leasehold Property Fund : FUTUREPF 7 The following table shows the information on the Properties the Fund invested both the 1st Investment and the 1st Capital Increase. Lease Rights/ Initial Investment Usable Area Additional Area After the 1st Common Area Lease Rights (sqm) (sqm) (sqm) Capital Increase (sqm) Lease Rights-Building 52,573.09 53,065.66 3,840.08 56,905.74 Lease Rights-parts of the 48,190.51 47,697.94 992.27 48,690.21 commonareas to generate income - Income Generating area 7,582.79 8,276.88 - 8,276.88 - Non-income Generating Area 40,607.72 39,421.06 992.27 40,413.33 Total Income Generating Area 60,155.88 61,342.54 3,840.08 65,182.62 Total Area 100,763.60 100,763.60 4,832.35 105,595.95 Term of the Lease/ Rights to 24 Nov 2006 24 Nov 2006 Ends Ends the Common Area Lease to 31 Dec 2026 to 31 Dec 2026 31 Dec 2041 31 Dec 2041 3. Operating Strategy customers can expect from an ideal comprehensive In managing the property fund, the shopping location. Furthermore, this includes Management Company’s main goals are to presenting marketing activities which are novel produce a consistent dividend for unitholders and and trendy to generate an exciting ambience to generate value appreciation for the units over that draws in shoppers throughout the year. This the long term. The Fund’s income will be from simultaneously helps stimulate revenue for tenants rental revenue coming directly from tenants.