MK Records a Loss of ฿3.42Mn in 2020 as Sales-Services Revenue Drops 31%

M.K. Real Estate Development Public Company Limited (MK) has reported its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;

MK reported a net loss of THB 3.42 million compared to a net profit of THB 177.45 million for the previous year, a decrease of THB 180.87 million, mainly due to a decline in revenue. Total revenue from sales and services was THB 3,056.93 million, a decrease of THB 1,381.18 million or 31.12%.

 

For the year 2020, sales from the real estate business were THB 2,530.40 million, a decrease of THB 1,406.37 million or 35.72% YoY.  MK was able to maintain sales of residential units close to the same level as the previous year, even though; there was an impact from the spread of COVID-19. In addition, the financial institutions adopted a  stringent housing loan approval policy. Sales of residential units were THB 2,458.96 million, a decrease of THB 167.16 million or -6.37%.

 

MK Group generated revenue from rent and service for a total amount of THB 374.27million, an increase of THB 33.08 million or 9.7% YoY. The main contribution came from the leased warehouse/factory area in the Bangkok Free Trade Zone and the transaction of Prospect Development Co., Ltd.’s sale of 130,092 sq.m. of warehouse /factory area to Prospect Logistics and Industrial Leasehold Real Estate Investment Trust for a total consideration of THB 1,953.1 million.

 

At the end of the year, MK held 8.92% in Prospect REIT.  MK Group Will Receive dividends from this investment as well as fees from the property management business. In addition, by the year 2021, Prospect plans to launch 2 new projects which will enable Prospect to add 120,000 sq.m. of warehouse/factory space. With regard to Prospect’s existing projects, there are a number of warehouses/factories being developed and expected to be completed by the second quarter of 2021.