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Annual Report
TPARK LOGISTICS PROPERTY FUND: TLOGIS
For period from January 1, 2011 to December 31, 2011
This English version of this Annual Report is only for informational purposes. Interpretation and construction must still be base on the Thai Text.
Table of contents
Page
Messages from the Management Company 1
TPARK Logistics Property Fund 2
Name and Address of Property Manager 4
Details of Investment 5
Details of the lmmovable Properties 6
Details of the Purchase of lmmovable Properties 9
Details of Sale of Immovable Properties 10
Details of Loan of Funds 10
Warehouse Market Situation & Trends 11
Total Expenses as called from Property Fund 12
List of Related Persons having transactions with the Mutual Funds 12
managed by BBL Asset Management Company Limited
List of Soft commission 13
Mutual Fund Supervisor Report 14
Auditor Report and Financial Statements 15
Information for the Guarantor of Revenue for the Fund 43
BBL Asset Management Company Limited 49
1
Messages from the Management Company
To All Unitholders
TPARK Logistics Property Fund
BBL Asset Management Co., Ltd. would like to submit all unitholders the 2011 Annual
Report for TPARK Logistics Property Fund (TLOGIS)’s operating performance in 2011.
In 2011, Thailand had experienced severe floods in central provinces especially the
industrial estates in Ayutthaya province where TLOGIS’ warehouses are located and were affected.
Our 5 warehouses located in TICON Logistics Park Wang Noi, with a rental area of 34,106
sq. m. represented 27.1% of total TLOGIS’s rental area were partly damaged.
Currently the Fund has already repaired the damaged warehouses and returned them to the
tenants at the end of January 2012.
For the period from 1 January 2011 to 31 December 2011, the Fund distributed the dividend
from its operating performance and retained earnings to unitholders of Baht 0.75 per unit.
Finally, BBL Asset Management Co., Ltd. would like to thank all unitholders who have
entrusted us to manage their investment. We will manage the Fund by taking into account the best
interest of the unitholders and good governance.
BBL Asset Management Company Limited
2
TPARK Logistics Property Fund Abbreviation as “TLOGIS”
The Asset Management Company
BBL Asset Management Company Limited
Type of the Fund Project
Close - end Property Fund
Project Life
Not Specified
Objectives
The mobilize funds from Thai and foreign individuals include juristic investors. The mobilize funds
will be used to purchase, lease and/or sublease immovable properties by taking a transfer of
ownership of immovable properties, leasehold interests and/or sublease right. To derive benefits
from immovable properties, the fund will lease, sublease, transfer and/or liquidate invested or
acquired properties include, but not limit to renting or sublease properties to operators to finding
benefits from and properties, fixing, improving, altering, changing, extending, constructing and
developing properties. By applying for or taking a transfer of relevant and necessary licensable from
the competent authorization. The purpose of this fund is to generate steady dividends and increase
the Fund’s net asset value in the long-run and to invest in other properties and/or securities and/or
finding interest by means as prescribed by securities law and/or any other relevant laws.
Investment of the Fund
Current Investments
Currently the fund investments include land and warehouse. The assets comprise of 8 buildings 27
units cover a total of 125,961 square meters, which are located on 150 rai 2 ngan 37 square wah of
land in Projects Ticon Logistics Park Wang Noi, Projects Ticon Logistics Park Bangna and Projects
Ticon Logistics Park Laemchabang.The summary of the detail are as follow :
1. Plots of land and warehouse of 2 buildings 5 units in Projects Ticon Logistics Park Wang Noi.
2. Plots of land and warehouse of 4 buildings 11 units in Projects Ticon Logistics Park Bangna
3. Plots of land and warehouse of 2 buildings 11 units in Projects Ticon Logistics Park Laemchabang.
3
The details of plots of land and warehouse are set out in the table “Detail of properties invested by
the fund”.
Dividend Payment Policy
The Project has a policy to pay dividends to unitholders at least twice a year.
(1) In case that the Fund has net profits in each year, the Management Company shall pay
dividends not less than 90% of annual net profits to unitholders. Provided that the
aforementioned net profits are exclusive of unrealized profits from appraisal or reappraisal of
the immovable properties, securities and/or assets of the Fund
(2) In case that the Fund has retained earnings, the Management Company may pay dividends
from retained earnings to unitholders. However, the dividend payment from the
aforementioned net profits and retained earnings can be made only when such payment does
not increase accumulated losses to the Fund.
The Management Company shall pay the said dividends to unitholders within 90 days from the end
of the accounting period or any other operating period.
Additional Condition
In considering for making dividend payments, if the amount of interim dividends per unit to be paid
is lower than or equal to Baht 0.10, the Management Company reserves the right not to pay
dividends at that time and to combine such dividends together with next dividend payment.
The Management Company shall proceed in accordance with dividend payment criteria as
specified. However, if such criteria are otherwise amended, supplemented, announced, prescribed,
instructed, approved and/or relaxed by the SEC, the Office of the SEC, and/or any other competent
authority under law, the Management Company shall proceed accordingly. In such event, it shall be
deemed that approval has been obtained from Unitholders and it shall not be deemed as an
amendment to the Project.
4
Project Capital Baht 2,468,045,685
(Registration) (Two Billion, Four Hundred and Sixty-Eight Million, Forty-
Five Thousand and Six Hundred and Eighty-Five Baht)
Number of Units 237,538,350 Units
(Two Hundred and Thirty-Seven Million, Five Hundred
and Thirty-Eight Thousand and Three Hundred and Fifty
Units)
Type of Investment units Holder name specified
Trustee Kasikornbank Public Company Limited Tel. 0-2470-3200-2
Investment Units Registrar Bangkok Bank Public Company Limited Tel. 0-2230-1784
Property Fund Manager Mrs. Voravan Tarapoom
Mr. Sudhipongse Phuaphanpraser
Ms. Natree Panassutrakorn
Ms. Warisara Techakulwirot
Mr. Apiched Ritsuwan
Property Manager TICON Industrial Connection Public Company Limited
175 Sathorn City Tower, 13th Floors,
South Sathorn Road, Sathorn,
Bangkok. Tel. 0-2679-6565
5
Details of Investment As of December 31, 2011
Assets Market Value (Baht)
% of Net Asset Value
1. Cash at banks
2. Investments in securities
Government Bond
Treasury Bill
Bill of Exchange
60,238,980
-
-
29,989,700
2.35
-
-
1.17
Total 90,228,680 3.52
3. Investments in Properties
Property
Leasehold Rights
2,507,789,993
-
97.74
-
Total 2,507,789,993 97.74
4. Other assets
Accounts receivable from leases
Accounts receivable from interest
Deferred charges
Others assets
22,439,857
21,689
-
95,267
0.87
0.00
-
0.01
Total 22,556,813 0.88
Total assets 2,620,575,486 102.14
5. Other liabilities
Accrued expenses
Advance receipt for rental and service
Deposits for lease of assets
(9,793,861)
(4,879,658)
(40,189,152)
-0.38
-0.19
-1.57
Total liabilities (54,862,671) -2.14
Net assets value 2,565,712,815 100.00
No. of units 237,538,350 Units
Net asset value per unit 10.8012 Baht
6
Details of the Immovable Properties As of December 31, 2011
Purpose of use : Land and warehouse building for rent in Ticon Logistics Park – Wangnoi, Ticon Logistics Park – Bangna and Ticon Logistics Park –
Laemchabang
Rental income : For period from January 1, 2011 to December 31, 2011 amounted 165,867,777 Baht
The details of Immovable Properties are as follows;
No. Project Warehouse Building Land Title Deed No.
Location Land Area
(Rai-Ngan-Square Wah)
Warehouse Space
(Square Meter)
Details of Factory Buildings
Cost
(Baht)
Appraisal Value by Jones Lang
Lasalle (Thailand) Co., Ltd.
as of August 2, 2011
(Baht)
Appraisal Value by Nexus Property
Consultants Co., Ltd.
as of December 29, 2011
(Baht)
1 Ticon Logistics
Park – Wangnoi
W2 W2/1 25513 Phayom Sub-district,
Wangnoi District,
Ayuthaya Province
24 - 2 - 96 5,850 Single storey, reinforced
concrete building with
mezzanine floor, 1
building, separating into
4 units
406,362,508.37 410,000,000
2 W2/2 5,850
3 W2/3 5,850
4 W2/4 5,850
5 SM1 SM1 24728 20 - 2 - 90 10,706 Single storey, reinforced
concrete building with
mezzanine floor
425,608,756.73 457,300,000
7
No. Project Warehouse Building Land Title Deed No.
Location Land Area
(Rai-Ngan-Square Wah)
Warehouse Space
(Square Meter)
Details of Factory Buildings
Cost
(Baht)
Appraisal Value by Jones Lang
Lasalle (Thailand) Co., Ltd.
as of August 2, 2011
(Baht)
Appraisal Value by Nexus Property
Consultants Co., Ltd.
as of December 29, 2011
(Baht)
6 Ticon Logistics
Park – Bangna
W3 W3/1 887 Bang Samak Sub-
district,
Bang Pakong
District,
Chacheongsao
Province
18 - 2 - 4
11,250 Single storey, reinforced
concrete building with
mezzanine floor, 1
building, separating into
2 units
308,398,457.00 305,600,000
7 W3/2 5,775
8 FZ3 FZ3/1 30844 11 - 1 - 83
2,450
Single storey, reinforced
concrete building with
mezzanine floor, 1
building, separating into
4 units
193,403,266.00 195,900,000
9 FZ3/2 2,450
10 FZ3/3 2,450
11 FZ3/4 2,450
12 FZ5 FZ5/1 30845 11 - 1 - 93
2,450 193,292,954.00 194,400,000
13 FZ5/2 2,450
14 FZ5/3 2,450
15 FZ5/4 2,450
16 FZ1 FZ1 30846 15 - 0 - 11 13,700 Single storey, reinforced
concrete building with
mezzanine floor
343,896,835.04
8
No. Project Warehouse Building Land Title Deed No.
Location Land Area
(Rai-Ngan-Square Wah)
Warehouse Space
(Square Meter)
Details of Factory Buildings
Cost
(Baht)
Appraisal Value by Jones Lang
Lasalle (Thailand) Co., Ltd.
as of August 2, 2011
(Baht)
Appraisal Value by Nexus Property
Consultants Co., Ltd.
as of December 29, 2011
(Baht)
17 Ticon Logistics
Park –
Laemchabang
A A 152508
130252
104395
112194
112195
Nong Kham Sub-
district,
Sriracha District,
Chonburi Province
48 - 2 - 60 5,310 Single storey, reinforced
concrete building with
mezzanine floor
76,352,094.00
18 B B 5,310 77,186,798.00
19 C C 5,310 76,352,094.00
20 D D 5,310 77,052,507.00
21 E E 5,220 75,514,041.00
22 F F 5,220 75,746,532.00
23 G G 2,570 36,580,476.00
24 H H 1,930 28,507,589.00
25 I I 1,450 21,446,366.00
26 J J 1,000 13,994,834.00
27 K K 2,900 41,959,827.00
Total 150 - 2 - 37 125,961 2,471,655,935.14 695,900,000 867,300,000
Notes:
1. Factory no. 16 - 27 have been purchased on September 29, 2011 – used as investment price (before due date of appraisal review or appraisal) according to rules and regulations
of the Office of SEC
2. Both independent appraisers utilized income approach in undertaking the assessments for the properties since such properties are income-producing assets. Investors may
review the appraisal reports at the Management Company.
9
Details of Purchase of Immovable Properties For period from January 1, 2011 to December 31, 2011
Transaction Date : September 29, 2011
Seller : TICON Logistics Park Company Limited
Objective : For Investment
Unit : Baht
No. TICON Logistics
Park
Warehouse No.
Location Appraised Value Purchase Price
Purchase Expense
Nexus Property
Consultants Co., Ltd.
(April 21, 2011)
Knight Frank Chartered (Thailand) Co., Ltd.
(April 21, 2011)
1 Bang na FZ1 Bang Samak
Sub-district, Bang
Pakong District,
Chacheongsao
Province
317,000,000 322,400,000 343,500,000 396,835.04
2 Laemchabang A Nong Kham Sub-
district, Sriracha
District, Chonburi
Province
460,000,000 78,400,000 76,263,989 88,105.00
3 B 80,100,000 77,097,730 89,068.00
4 C 78,400,000 76,263,989 88,105.00
5 D 158,300,000 76,963,594 88,913.00
6 F 75,659,126 87,406.00
7 E 78,000,000 75,426,903 87,138.00
8 G 133,000,000 39,800,000 36,538,265 42,211.00
9 H 32,000,000 28,474,693 32,896.00
10 I 24,100,000 21,421,618 24,748.00
11 J 15,000,000 13,978,685 16,149.00
12 K 46,300,000 41,911,408 48,419.00
Total 910,000,000 952,800,000 943,500,000 1,089,993.04
Remark: * Both Appraisers used income approach for valuation
10
Details of Sale of Immovable Properties For period from January 1, 2011 to December 31, 2011
Property Disposal or Leasehold Right Transfer 10,768,000.00 Baht
Less Acquisition of Property Disposal or Leasehold Right Transfer 10,768,000.00 Baht
Transfer fee and Selling expense 76,512.50 Baht
Net Profit (Loss) from Property Disposal or Leasehold Right Transfer (76,512.50) Baht
1. Details of asset sold : Land title deed no. 26814 with 3–1–46 rai area located at Payom
Sub-District, Wangnoi District, Ayutthaya Province.
2. Transaction date : March 21, 2011
3. Benefits from asset disposal : Since the subject land is very big and contains large land surplus,
the Fund decided to dispose a part of such surplus land.
4. Buyer : TICON Logistics Park Co., Ltd.
5. Details of Appraisal Value : Appraisal values by 2 independent appraisers (based on income
approach) are
1. Baht 9,800,000 Knight Frank Chartered (Thailand) Co., Ltd.
(as of March 18, 2011)
2. Baht 10,000,000 by Nexus Property Consultants Co. Ltd.
(as of March 18, 2011)
The independent appraisers based on market comparison
approach on the assumption that a free and clear freehold title
basis without considering to the lease agreement.
Details of Loan of Funds For period from January 1, 2011 to December 31, 2011
- None -
11
Warehouse Market Situation & Trends
In the fourth quarter of 2011 the central region of Thailand had been affected by the flooding
especially in the industrial estate, Industrial Park, and industrial areas in Ayutthaya and Pathum
Thani. The properties of TPARK Logistics Property Fund (FUND) located in the Logistics Park at
Wang Noi had also been adversely affected.
The remaining 4 warehouses out of 27 warehouses of the FUND were unoccupied/vacant therefore
the occupancy rate as at the end of 2011 was at 92.2%.
The tenant lease that will be expired in 2012 is equivalent to 44.3% and will be 50.8% in 2013. The
tenants are well diversified into various industries where retail industry represents 39.4%, followed
by 23.0% in the logistics industry, 19.1% in Electronics parts and 9.0% in Automotive industry
respectively.
The nationality of tenants were also well diversified of which French recorded the highest proportion
of 22.5%, followed by Germany 22.5%, Japan 15.4% and Australia 10.7% respectively.
In addition, the FUND has a minimum rental income guarantee of Baht 187.5 million per year by the
property manager and the FUND assures that it can pay dividend to the unitholders.
12
Total Expenses as called from Property Fund For period from January 1, 2011 to December 31, 2011
Fund's Direct Expenses* Amount
(Thousand Baht)
% of Total Asset
Management fee 3,022.87 0.16
Trustee fee 543.54 0.03
Registrar fee 1,108.39 0.06
Property Management fee 20,203.02 1.05
Property Operation and Maintenance Expenses 3,184.03 0.17
Fund’s Setting Up Expenses - Written Off 1,037.52 0.05
Auditing fee 354.90 0.02
Asset Appraisal Fee 198.40 0.01
Other Expenses 4,045.07 0.20
Total** 33,697.74 1.75
* Included VAT
** Not included brokerage fee and other fees related to the purchasing and selling of securities.
List of related persons having transactions with the Mutual Funds managed by BBL Asset Management Company Limited
As of December 31, 2011
No. List of related persons
1 TICON Industrial Connection Public Company Limited.
2 TICON Logistics Park Company Limited.
The investor can inspect the transactions entered into with the related persons of the Mutual Funds at the Management
Company directly or at the website (www.bblam.co.th) and the Office of SEC (www.sec.or.th)
13
List of Soft commission As of December 31, 2011
Company Benefit Reason
BANK OF AMERICA, NATIONAL ASSOCIATION Research Paper And Indicative Yield For Fund Benefit
BANK OF AYUDHYA PUBLIC COMPANY LTD. Research Paper And Indicative Yield For Fund Benefit
BANGKOK BANK PUBLIC COMPANY LIMITED Research Paper And Indicative Yield For Fund Benefit
BNP PARIBAS Research Paper And Indicative Yield For Fund Benefit
CIMB THAI BANK PUBLIC COMPANY LIMITED Research Paper And Indicative Yield For Fund Benefit
CITIBANK, N.A. Research Paper And Indicative Yield For Fund Benefit
DEUTSCHE BANK AG. Research Paper And Indicative Yield For Fund Benefit
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION Research Paper And Indicative Yield For Fund Benefit
KASIKORNBANK PUBLIC COMPANY LIMITED Research Paper And Indicative Yield For Fund Benefit
KRUNG THAI BANK PUBLIC COMPANY LIMITED Research Paper And Indicative Yield For Fund Benefit
THANACHART BANK PUBLIC COMPANY LTD. Indicative Yield For Fund Benefit
TISCO BANK PUBLIC COMPANY LIMITED Research Paper And Indicative Yield For Fund Benefit
UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED Research Paper And Indicative Yield For Fund Benefit
SIAM COMMERCIAL BANK PUBLIC COMPANY LTD. Research Paper And Indicative Yield For Fund Benefit
STANDARD CHARTERED BANK (THAI) PUBLIC COMPANY LIMITED Research Paper And Indicative Yield For Fund Benefit
TMB BANK PUBLIC COMPANY LIMITED Research Paper And Indicative Yield For Fund Benefit
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED Research Paper And Indicative Yield For Fund Benefit
14
15
Auditor Report and Financial Statements
31 December 2011
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
Information for the Guarantor of Revenue for the Fund
TICON Industrial Connection Public Company Limited as the Property Manager agrees and
guarantees under the Lease and Service Payments Guarantee Agreement with the Fund that the
Fund will earn the net revenue after deducting common area service fee of not less than Baht
187,500,000 annually. However, the said guarantee amount shall not apply to the business
interruption or force majeure events including fire, flood, storm, riot, war, or other natural disasters
which are beyond the control of Property Manager.
1. Financial highlight
Unit : Baht
Financial Statements for the past 3 years
Balance Sheet As of
31 Dec. 2009As of
31 Dec. 2010 As of
31 Dec. 2011
Assets
Current assets
Cash and cash equivalents
Current investments
Trade accounts receivable - Net
Other current assets
82.83
30.00
17.38
33.90
183.23
847.37
41.59
45.97
136.83
950.00
106.90
62.05
Total current assets 164.11 1,118.17 1,255.77
Non-current assets
Pledged deposits at financial Institutions
Accounts receivable from operating leases that have not been paid
Investment in associates-Net
Property under development and available for rent/sale - Net
Property for rent - Net
Property, plant, equipment, and computer software - Net
Deferred tax assets
Deposit for land
Other non-current assets
11.66
-
1,923.61
4,797.70
3,885.32
106.48
201.88
-
18.30
10.86
16.68
1,820.96
4,742.16
3,921.05
577.77
258.46
5.08
13.44
40.44
18.15
1,898.14
4,674.39
6,315.46
607.77
202.13
261.13
15.35
Total non-current assets 10,944.96 11,366.46 14,032.96
Total Assets 11,109.07 12,484.63 15,288.73
44
Financial Statements for the past 3 years
Balance Sheet As of
31 Dec. 2009As of
31 Dec. 2010 As of
31 Dec. 2011
Liabilities And Shareholders' Equity
Current liabilities
Short-term loans from financial institutions and liabilities under
trust receipts
Trade accounts payable & Other payable
Long-term loans from related parties are due within one year
Long-term loans due within one year
Debentures due within one year
Obligations under finance leases due within one year
Corporate income tax payable
Other current liabilities
160.00
148.65
151.27
163.65
500.00
-
320.49
82.82
1.72
196.07
157.14
-
1,000.00
3.15
229.06
14.37
1,606.10
329.33
239.14
-
850.00
-
24.90
18.60
Total current liabilities 1,206.71 1,601.52 3,068.08
Non-current liabilities
Long-term loans from related party - Net
Long-term loans - Net
Debentures - Net
Reserve for long-term employee benefits
Deferred income tax liabilities
Customer deposits
Other liabilities
1,456.15
337.80
2,850.00
-
261.68
-
3.15
864.33
-
4,150.00
-
7.13
264.66
-
761.39
-
5,300.00
18.93
7.44
392.70
-
Total non-current liabilities 4,908.78 5,286.12 6,480.46
Total Liabilities 6,115.49 6,887.64 9,548.54
Shareholders’ equity
Issued and paid up
Cash receipts from shared subscription
Premium on ordinary shares
Excess of investment over book value of a subsidiary
Retained earnings
659.85
2.94
2,666.60
(20.05)
1,684.23
686.34
105.59
2,857.91
(20.46)
1,967.61
781.01
-
3,510.09
(19.09)
1,468.18
Total Shareholders’ equity 4,993.57 5,596.99 5,740.19
Total Liabilities And Shareholders’ Equity 11,109.07 12,484.63 15,288.73
45
Income statements for the years 2009 2010 2011
Revenues
Rental and related service income
Revenues from construction service
Utility income
Sales of properties to unrelated parties
Sales of properties to associates
Management fee income from associates
Other income
809.23
20.72
13.24
-
1,530.00
77.73
8.56
850.87
20.63
16.52
157.18
1,737.75
107.49
43.01
880.23
21.57
20.59
132.97
943.50
113.44
19.08
Total revenues 2,459.49 2,933.45 2,131.39
Expense
Cost of rental and related services
Cost of construction services
Cost of utilities
Cost of sales of properties to unrelated parties
Cost of sales of properties to associates
Selling expenses
Administrative expenses
Depreciation and amortization expenses
Management remuneration expense
Other expenses
198.52
13.45
13.24
-
1,052.33
13.94
135.44
84.20
32.88
2.82
194.49
15.90
16.52
95.67
959.25
13.72
148.11
94.80
-
4.92
248.12
18.98
20.59
63.60
636.99
19.04
214.09
92.91
-
15.55
Total expenses 1,546.82 1,581.45 1,329.88
Income before share of profit from investments in associates, finance
cost and income tax
Share of profit from investments in associates
Realized additional gain on sales of properties to associates
Deferred gain on sales of properties to associates
912.67
158.67
-
(88.96)
1,352.01
168.59
38.90
(219.03)
801.52
160.80
3.52
(63.20)
Income before financial charges and corporate income tax
Finance cost
982.38
(293.84)
1,340.46
(261.44)
902.64
(267.15)
Profit before corporate income tax
Corporate income tax
688.54
(35.26)
1,079.03
(257.93)
635.49
(199.09)
Net income 653.28 821.10 436.39
46
2. Procedure in practice according to the Lease and Service Payments Guarantee Agreement
Ticon Industrial Connection Public Company Limited as the Property Manager has entered into
the Lease and Service Payments Guarantee Agreement with the Fund of which it guarantees
the minimum revenue and service for 7 years and 1 month commencing from 1 December 2009
to 31 December 2016 as follows:
(1) From 1 December 2009 to 31 December 2009, net revenue after deducting common area
service shall not be less than Baht 9,875,000 and,
(2) From 1 January 2010 to 28 September 2011 (before the 1st additional investment in
properties of the FUND), net revenue after deducting common area service shall not be
less than Baht 118,500,000.
(3) From 28 September 2011 1 January 2010 to 28 September 2011 (the 1st additional
investment in properties of the FUND), net revenue after deducting common area service
shall not be less than Baht 47,916,666.67.
(4) From 1 January 2012 to 31 December 2016, net revenue after deducting common area
service shall not be less than Baht 187,500,000 per annum (calendar year).
The Property Manager agreed to deliver a letter of guarantee issued by a commercial bank to
the FUND annually throughout the guarantees period for the minimum revenue and service for
the FUND.
In 2011, the FUND received rental revenue and service fee as follows:
i. From 1 January 2011 to 30 September 2011, revenue from rental and service totalled
Baht 124,150,826.
ii. From 1 October 2011 to 31 December 2011 revenue from rental and service totalled Baht
41,716,951 due to the flood situation in Ayutthaya in October 2011. This concerned as a
force majeure which is beyond the control of the Property Manager therefore the
guarantee will not apply for such period.
47
3. Management Company’s Opinion
Financial Ratio 2009 2010 2011
Long-term debt to equity ratio (times):
Long-term debt
equity
1.22 1.23 1.66
Earnings Before Interest and Taxes coverage (EBIT) ratio (times):
Net Profit + Interest Expense + Corporate Income Tax + Deferred gain on sales of
properties to associates
Interest Expense
3.65 5.97 3.62
Coverage obligations ratio (times):
(Net cash from operating activities + Interest Expense)
(Repayments of long-term loans and debentures + dividend + Interest Expense)
0.37 0.99 0.43
Management Company positively viewed to the financial capability of TICON Industrial
Connection Plc. as the Property Manager to guarantee the minimum lease rental of the FUND as
follows:
Despite an increase of Debt/Equity ratio from 1.23 in 2010 to 1.66 in 2011 from additional
loans in 2011 of Baht 2,583 million for construction and purchase of land, the ratio remained
low for general factory and warehouse developers for sale and lease out.
The ability to pay interest and obligations for TICON in 2011 were 3.62 times and 0.43 times
respectively. The said two ratios were lower than in 2010 due to a decline in income from
real estate sales. However, the company has never been faced any problem to pay the
interest.
To ensure the FUND’s confidence, TICON has given the FUND a bank guarantee issued by
Thai commercial bank for an amount of Baht 187.5 million to guarantee a minimum lease
rental which will expire on 31 December 2016.
In addition, TICON also requested TRIS Rating Agency to rate the company’s credit as well
as the company’s debt instrument. As of 18 January 2012 the company’s credit remained
unchange at A/stable which reflects the leadership position in the factory-for-rent industry,
consistent cash flow from factory and warehouse leases, and good performance of the
company amidst risk factors against credit rating, the economic slowdown in developed
countries, and the declining confidence of investors due to the overwhelming flood in
Thailand last year. However, The company’s credit outlook was "negative" reflecting to the
impact of major floods in late 2011.
48
4. Comparison of actual revenue from the Fund’s earnings
Unit: Baht
2010 2011
From 1 January -30 September 2011
From 1 October - 31 December 2011
Revenue from rental and service (actual) 166,023,059 124,150,826 41,716,951
Income according to the Lease and Service Rental
Guarantee Agreement 118,500,000 118,500,000 47,916,666.67
Actual revenue higher (lower) than revenue from the
Lease and Service Rental Guarantee Agreement 47,523,059 2,027,985 (6,199,715.67) **
Remark ** Due to the floods in October 2011 in Ayutthaya and according to the Lease and Service Rental Guarantee
Agreement by the Property Manager, this situation was concerned as a force majeure and beyond the
control of the Property Manager therefore the guarantee will not apply for such period.
49
BBL Asset Management Company Limited. Background
BBL Asset Management Co., Ltd. was registered on March 19, 1992 with a fully paid-up registered
capital of Baht 100 million, the registered number 01055535049700. It was granted a license to
operate asset management business from the Ministry of Finance under the license number LorKor-
0005-02 date January 15, 2010.
Location of the Office
BBL Asset Management Company Limited
175 Sathorn City Tower, 7th, 21st and 26th floor
South Sathorn Road, Sathorn, Bangkok 10120 Tel. (662) 674-6488 Fax : (662) 679-5995-6
Website: www.bblam.co.th
Compiled data as of March 29, 2012
BBL ASSET MANAGEMENT CO., LTD.
175, Sathorn City Tower, 7th, 21st and 26th Floor
South Sathorn Road, Bangkok 10120
Tel: 0-2674-6488 Fax: 0-2679-5995-6
www.bblam.co.th
