SET-listed developer Pruksa Holding continues to scale back new residential launches this year, planning only seven projects worth a combined 8.2 billion baht as it shifts focus to clearing unsold inventory worth 66 billion baht and expanding recurring-income assets.
Pattama Piyamaneeporn, deputy group chief executive, said the strategy this year centres on optimising assets, building recurring income, accelerating asset utilisation, clearing unsold stock to improve its cash position and strengthening cash flow management.
"We have continued reshaping our portfolio since the second half of last year," she said.
"We are in a transition phase, focusing on refining our core business and divesting non-core assets."
The seven new projects worth 8.2 billion baht mark the company's lowest annual launch, both in terms of number and value, on record.
Last year, it launched 14 projects worth 13.3 billion baht, below the announced plan of 22 projects worth 23.4 billion baht.
Previously, the lowest launch value was 11.1 billion baht across 19 projects in 2022, while the peak was in 2016, when it launched 69 projects worth 59.7 billion baht -- the largest in the market at the time.
The company targets total revenue of 18.8 billion baht this year, up from 15 billion last year.
Of the total, 15 billion baht is expected from real estate, up 30%, 2.6 billion baht from healthcare, up 16%, and 1.2 billion baht from other income, remaining unchanged year-on-year.
Total revenue last year fell 23% from 19.4 billion baht in 2024. The main drag came from the real estate business, which declined 28% from 15.9 billion baht to 11.5 billion baht, while healthcare revenue rose 2.5% to 2.24 billion baht.
"We will convert some of our assets into higher-value, recurring-income opportunities, including rental apartments," said Ms Pattama.
"We will also reactivate existing land to help increase recurring income to 10% of total revenue within three years."
This year, it plans to invest 4.4 billion baht, comprising 1.5 billion baht for new land acquisitions for residential development and 2.9 billion baht for investments in hospitals through Vimut, warehouses via joint ventures with Singapore-based CapitaLand, and commercial properties.
The company expects 16.5 billion baht in presales and 15 billion baht in transfers this year, up from 11 billion baht and 11.5 billion baht, respectively, last year. Both figures have fallen short of targets of 19.8 billion baht and 18.7 billion baht.
"We will remain cautious on new launches and focus on existing projects," said Dhira Thongwilai, chief executive of Pruksa Real Estate, the residential development arm of Pruksa Holding.
The company will continue clearing inventory, particularly in the mid- to lower-end segments, aiming to reduce the proportion of this segment from 30% of total inventory last year to 25% this year.
Of the total inventory worth 66 billion baht, 26 billion comprises single detached houses, 25 billion townhouses and 15 billion baht condos.
