Developers suffer in Q1 amid stagnant economy

Nearly all Stock Exchange of Thailand (SET)-listed residential developers with quarterly revenue of at least 2.5 billion baht reported year-on-year declines in both revenue and net profit in the first quarter, mainly due to the economic slowdown and higher mortgage loan rejection rates.

- KANANA KATHARANGSIPORN

Even though some developers have additional revenue streams, particularly from the hotel business that has benefited from a stronger tourism sector compared to the residential market, they were still unable to prevent a decline in consolidated revenue.

The company that posted the highest revenue and net profit was AP Thailand, with 7.7 billion baht in revenue and 864 million baht in net profit, down 17% and 33%, respectively, from the first quarter of 2024.

It was followed by Sansiri, which reported 6.9 billion baht in revenue and 813 million baht in net profit, representing year-on-year drops of 31% and 38%, respectively.

However, Sansiri’s net profit was slightly below that of Land & Houses (LH), which recorded 837 million baht from revenue of 4.72 billion baht.

LH’s revenue and net profit declined by 29% and 32% year-on-year, respectively, despite rental and service income accounting for 43% of its total revenue, or around 2 billion baht.