Sansiri CEO ‘Apichart Chutrakul’ leads executives in announcing business plan as company steps into its 40th year ”NAVIGATING THE FUTURE: RESILIENT GROWTH” concept calls for strong fundamentals, a balanced portfolio, thoughtful management of product stocks, and maintaining decent yields for stockholders. Meanwhile, the company is also highlighting its social contributions and undertakings that will make society more enriched.
- 2024 starts off with a focus on sustainable growth in operating results. 46 new projects worth 61 billion baht are being launched this year.
- Leadership position to be maintained; Sansiri has set a presale target of 52 billion baht and a transfer target of 43 billion baht.
- Importance being given to financial discipline, with liquidity to be maintained at a high level
- Investment opportunities being expanded through property development joint ventures with new business partners.
- Investment weight being shifted more toward strategic locations in 4 major cities, namely Phuket, Chiang Mai, Pattaya and Hua Hin.
- “Sansiri Community” model being continued at locations developed by Sansiri, to elevate these communities into excellent residential societies.
RESILIENT GROWTH - persevere sustainably
Mr. Apichart Chutrakul, the Chief Executive Officer of Sansiri Plc. (SIRI), Thailand's leading property developer, revealed that 2024 is considered an important year for growth as Sansiri marks its 40th year.; Leading up to the present-day Sansiri, an organization which is among the preferred employers for members of the newer generation, the company had weathered several crises. As crises and opportunities are two sides of the same coin, every crisis made us grow stronger. Our growth did not stem from having been in the scene for a long time, but from our willingness to change swiftly and continuously. This was made possible by the capabilities of persons who have been cultivated under the same DNA, namely “Speed to Market”, “Attention to Detail”, and “Work From Heart”. On the occasion of reaching its 40th year, Sansiri is ready to announce a business plan adhering to the “Resilient Growth” guideline. It will be leveraging capacities, expertise and innovations to expand on its business and drive overall work, enabling products and services matching consumers’ desires and standing out from those of competitors to be delivered. In the aspect of net profit, Sansiri expects to hit a new record by realising the best operating results in the 40 years since the establishment of the company. This would be represent a solid step that carries over from 2023, when the company was able to launch 44 new projects worth a combined 65 billion baht in value – a new all-time high record and a 50% expansion from the previous year. This number of project launches was 10 times higher than during COVID-19 lows. The launched products included condominiums, detached houses, duplex houses and townhomes in all price segments. Together, the range of products accommodated all types of requirements and spanned all locations where there was real demand for housing.
Amid challenging circumstances, we committed to business development and continual growth alongside placing importance in caring for the society and preserving the environment. Sansiri believes these undertakings are crucial for future sustainability.
The organizational structure was revamped with an aim of transforming the entity by augmenting the company’s executive body with new-gen individuals, with hopes of fostering growth in a new decade. This was in line with the vision of Sansiri being Thailand’s leading property developer and presenting residential products and services that are comprehensively accessible by everyone and creating sustainable gains for all stakeholders.
The company looks to give back to society by supporting the reduction of disparity. It seeks to respond to the big-picture issues relevant to the state policy to improve access to compulsory education. Sansiri has signed a 3-year cooperation agreement with the Equitable Education Fund to create the “Ratchaburi Model” that would be implemented under the government’s Zero Dropout program. Sansiri is providing 100 million baht of monetary support for the pilot project in Ratchaburi, which will turn the province into a equitable education model for the rest of the country. The goal is to reduce the number of school dropouts in Ratchaburi to zero in the year 2024. Much progress has been made under this endeavour. Importantly, Sansiri has no business in this locality and thus no conflicts of interest will arise.
Maintaining the pace of growth while making the real estate sector more robust
Mr. Uthai Uthaisangsuk, Chief Operating Officer of Sansiri Plc., revealed that Sansiri was able to efficiently maintain its growth level amid the economic recovery due to continually increasing launches of new projects as well as the pursuit of marketing campaigns and activities. As an example of the latter, the Museum of YOU event held in October 2023, contributed to Sansiri generating 49 billion baht of presale in 2023. The value of transferred properties (including joint venture projects), stood at 39 billion baht. 28 projects worth a combined 51 billion baht became sold out.
The development projects launched included those which expanded on the successes of the Narasiri and BuGaan brands, which fall under the Sansiri Luxury Collection category. They also included property developments undertaken in line with brand refreshments for Setthasiri and DCondo. In the high-rise category, a new 6.3-billion-baht series of D Condo projects spanning 6 developments across 6 high-potential locations throughout Thailand were launched. These condominium projects penetrate large communities that are either near universities or job sources in Bangkok, Hat Yai and Phuket. Other high-rise projects launched included SHUSH Ratchathewi and Via ARI, and new condo brands.
“For 2024, Sansiri will move to expand its business for sustainable growth. The plan is to launch a total of 46 projects worth a combined 61 billion baht in high-potential locations in Bangkok and the provinces, with the ratio of luxury houses being increased. The target is for presale of 52 billion baht and property transfer worth 43 billion baht. In the low-rise business group, the plan is to launch 26 projects worth 35 billion baht in all. The highlight projects this year will be spearheaded by 2 projects in the Sansiri Luxury Collection category, namely the Narasiri Bangna super luxury detached homes project at the 10th kilometer marker. The project has a value of 3.8 billion baht, with property units priced between 45 and 70 million baht. Meanwhile, success in developing detached homes at the luxury level will be expanded on by the launch of 7 Setthasiri projects worth 14.4 billion baht in total. The first of these will be Setthasiri Watcharaphol-Theprak, a new 2.7-billion-baht project under the Georgian style located near the expressway and being at the heart of Watcharaphol. These developments will reassert the leadership position at the luxury and super luxury levels in the Thai property market. We will also make headway into the easy-to-access price level in the low-rise market by launching 6 Saransiri projects worth a combined 9.1 billion baht, which has the selling point of being the first detached house for a family. 4 Anasiri projects will be launched, with a combined value of 4.1 billion baht, enabling the delivery of a comprehensive range of products that spans detached houses, duplexes and townhomes. Sansiri has also scheduled an expansion of its low-rise portfolio as it looks to launch 2 new brands. Narinsiri is a new premium detached houses brand, and the first project will be Narinsiri Krungthep Kreetha, valued at 1.8 billion baht. The new Mabel brand for detached houses has an easy-to-access price range of about 5-7 million baht; the first project will be Mabel Bangna 26, valued at 850 million baht. For the high-rise business group, Sansiri has confirmed a plan to launch 20 condominium projects valued at 26 billion baht in total. It will carry on with the previous year’s successful strategy by proactively launching new projects that increasingly expand investment to tourism cities. There are the following highlights: in the luxury and beyond condominium segment, there will be a sales launch for The Standard Residences Hua Hin, whose project value is 4.1 billion baht. It will be the first branded residence in Asia and the third in the world under The Standard brand of boutique and lifestyle hotels, which is recognized globally. 2 new Via projects worth a combined 2.5 billion baht will be launched on exemplary locations where demand is high but supply is limited, namely in the Sukhumvit 34 and 61 areas. The company will continue to pursue the market for condominiums with easy-to-access prices using campus condo brands. There will be launches for 3 DCondo projects valued at 2.8 billion baht, as well as continual development of condos under the brands THE MUVE and condo me. In addition, we are prepared to deliver new excitement via a refresh of the THE BASE brand to accommodate this year’s launches of 3 projects, worth approximately 4.5 billion baht”, said Mr. Uthai.
All the while, Sansiri remains committed to making progress under its green mission and is Thailand’s first real estate developer to target reaching net-zero greenhouse gas emissions within the year 2050. This would be achieved by advancing green initiatives on the 4 fronts of ‘Process-Product-Partner-Investment’. One important work plan calls for the delivery of every new Sansiri project to be made with Green Living Designed Homes. This innovation involves the design, construction and delivery of clean energy homes so residents can have a good quality of life while helping to save energy. A household can reduce power consumption by as much as 18% per year via this innovation, which will be applied at all new THE BASE-branded condominiums in 2024. Common areas at property projects will adopt the Green Living Designed Home guideline in various applications, with an aim of initially reducing power consumption by about 6%. Unveils 3 strategies for retainment of leadership position in residential property development circle
Mr. Poomipak Julmanichoti, Chief Strategies Officer at Sansiri Plc., said “Over the past year, real estate businesses continually launched new projects after having encountered a stoppage of launches during the Covid period. Nonetheless, we view that the Thai economy going forward will not yet recover fully, both relating to domestic and foreign factors. Domestically, we view that interests make up an important variable and challenge. The recovery of the tourism market might become a factor that boost businesses by stimulating purchasing demand from foreign buyers, especially with products in the condominium group.” To achieve success in accordance with the targets that have been laid, Sansiri will continue to proceed with 3 key strategies for driving the organization, while also remaining prepared to accommodate all situations and making effort to retain its leadership position within the residential properties development business. The 3 strategies are as follow:
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Maintaining a regular growth of operating results and ramping up project launches, especially the launches of low-rise projects. Meanwhile, investment funds are to be used efficiently and liquidity kept at a high level. For the operating results in the first 9 months of 2023, net profit came in at 4.760 billion baht (a 91% increase from the same period of the previous year and the highest within the real estate circle). This was the highest figure in the 40 years since the company’s establishment and exceeds the entire-year net profit in 2022. The results reflect the company’s effective management that is aimed at fostering robust future growth, and fall in line with the business direction that has been laid.
With the continued growth in profits, Sansiri also strives to generate the best yield for stock holders and allow them to receive higher dividends in the future. The most recent dividend figures from 2023 indicated the dividend yield was 12.4%.
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Manage the ready-to-sell products portfolio in a way that disperses the products among diverse localities. This would create more opportunities and increase competitive advantage by enabling the control of supply at each price level and thus bringing about an optimal amount of products at each price level. Before considering a project launch, investment discipline is being stressed instead of taking every opportunity to develop projects. In combination with the projects launching this year, Sansiri will have 146 billion baht worth of property units ready to be sold throughout Thailand. This will allow Sansiri’s income to experience continuous growth in the next 3 years.
Under this strategy, Sansiri is expanding investment opportunities with new business partners through joint project development. It is also venturing back toward strategic locations in major cities and tourism cities where it believes potential exists and where there is a clear roadmap for infrastructure development. These cities should also benefit from the recovery of tourism and should be popular among foreigners. Phuket, Chiang Mai, Pattaya and Hua Hin are among these cities. The plan is to launch 13 projects in upcountry, worth a combined 16 billion baht – a 170% growth from the previous year. For the strategic location of Phuket, a 5-year tactical plan has been established, calling for the launch of 16 new projects worth 15 billion baht in total. Sansiri Hub, the company’s office for Phuket province, will also be launched in 2024. In Hua Hin, The Standard Residences Hua Hin will be launched in February.
The Sansiri Community model will continue to be pursued at each location developed by Sansiri. 4 more communities will be elevated into “excellent residential societies”. These include the Srinakarin-Phraeksa, Bang Na 10th kilometer marker, Sri Wari and Outer Ring Road-Lam Luk Ka communities. 8 communities have already been successfully elevated, namely the Krungthep Kreetha, Bangna-Lake 26, Rangsit-Bang Phun, Ratchaphruek-346, Bangkok-Pathumthani, West Gate, Rama 2-Outer Ring Road, and Pracha Uthit 90 communities.
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Elevate the quality of products and services and sustainability so they rank at the very top among the residential property development business circle. This would be in line with projects at the mid and high levels, which are being increasingly launched, and represent an important tactic employed by Sansiri to maintain its top-notch standards within the real estate circle. Importantly, every Sansiri project enables clients to have confidence in the quality residential properties management service, delivered by professionals and responding to all living demands, from Plus Property. Sansiri remains committed to delivering good quality of life sustainably, for all clients and stakeholders.