Siri Prime Office Property Fd

KGI Securities (Thailand) has maintained its "Equal Weight" investment rating on the property sector, assigning a "Buy" recommendation to SIRI and AP because they are the number one and number two market leaders in presales respectively, supported by strong core businesses, good dividend payouts, and solid backlogs and ready-to-sell projects. Meanwhile, SPALI, LH and PSH are rated "Hold", while ORI and QH are rated "Sell", with ORI because its recovery path remains challenging and QH because most of its profit comes from share of profit from associates rather than its core property business. Although the property business remains sluggish due to slowing revenue and low gross margin, AP is still growing strongly enough for its 1H69 profit to grow on the back of its core business, while SPALI, QH, SIRI and ORI have share of profit from associates helping to support net profit. PSH performed better than expected thanks to cost control and its steadily growing hospital business, and LH has a hotel business that accounts for about 50% of revenue and remains outstanding. It is expected that 3Q69F profit of AP, SPALI and SIRI will grow year on year in line with construction completion schedules and condominium transfers, while 4Q69 will be the quarter with the highest earnings of the year for AP, LH, ORI and SIRI, driven by the high season and a large number of new condominiums scheduled for ownership transfer. LH is likely to lead the group thanks to transfers of the "One Verandah" condominium worth 1.5 billion baht, which is already 57% sold, plus a large gain from the sale of the Grand Centre Point Surawong hotel worth 3 billion baht and apartments in the United States. The consumer confidence index in August 69 improved to 53.2 from about 50 in 2Q69 and 51.8 in July, while the property sector's aggregate profit in 1H69 accounted for 43% of the current full-year profit forecast of 19.4 billion baht, up 5% year on year, and the 2570F forecast of 20.6 billion baht, up 6.5% year on year.

CGS International (Thailand) or CGSI's research department stated that there was news from Nation on September 4, 2026, that Sansiri Capital, in which SIRI holds a 50% stake, has signed a purchase agreement to acquire 100% of The Lake Como Edition, an ultra-luxury 5-star hotel on Lake Como in Italy, valued at over 200 million euros or approximately 8 billion baht, from a group of co-investors including Bain Capital and Omnam Group. The deal is expected to close within September 2026. This deal is part of SIRI's strategy to expand its international hotel portfolio, following its ownership of The Manner SoHo in New York and its investment in Standard International Holdings (SIH), which was later sold to Hyatt for 355 million US dollars. SIRI will use funding from 70% loans and 30% equity, with an expected investment of approximately 2.2-2.4 billion baht, while it has received proceeds from the SIH sale totaling about 163 million US dollars, held in the US since September 2024, and will use part of this for this deal. The Lake Como Edition has 148 rooms, operates under Marriott International's EDITION brand, had an occupancy rate above 70% during July-August 2026, and an ADR above 1,500 euros per night. Sansiri Capital expects an IRR of 12-20%. SIRI will recognize dividend income from the new investment, which is likely to be minimal in 2026-2028, and plans to sell Lake Como Edition within the next 5-10 years. CGSI expects net IBD/E to increase by approximately 0.05 times to 1.69 times by the end of Q3 2026 and recommends a "Buy" rating with a target price of 1.61 baht, representing a P/E of 6.1 times in 2027. It views the acquisition as potentially having a slight negative impact in the 1-3 year period, but the opportunity for profit from asset sales is a positive factor in the long term.

Sansiri disclosed that condominium sales in the first seven months of 2026 reached 16 billion baht, representing 70% of the full-year target of 23 billion baht, and expressed confidence that transfers will meet the target of 17.5 billion baht. In the second half of the year, the company plans to launch nine new projects worth a combined 11.7 billion baht, out of a full-year launch plan of 17 projects worth 29.4 billion baht, with projects in Phuket accounting for more than 36%. It is also moving ahead with partnerships with Japanese capital partners such as Mitsui Fudosan, Tokyu, and Nomura Real Estate to expand its upper-end portfolio and penetrate major tourism markets.

Sansiri, or SIRI, has formed a joint venture with Nomura Real Estate Thailand to launch the luxury condominium project THE MONUMENT SATHON, with a total value of 4.5 billion baht. SIRI holds a 55 percent stake and Nomura holds 45 percent. The project is located in a prime CBD location on Sathorn Soi 10, just 80 meters from BTS Saint Louis station. It is a freehold condo with 29 floors and 185 units, with selling prices ranging from 9.9 million to 150 million baht. Units range from one-bedroom apartments of 39 square meters to penthouses of 240 to 303 square meters, of which there are only two. This project extends the THE MONUMENT brand following the success of THE MONUMENT THONGLOR and THE MONUMENT SANAMPAO, targeting high-net-worth individuals for both living and long-term investment.

Dao Securities estimates SIRI's net profit for the second quarter of 2026 at 958 million baht, down 21 percent from a year earlier but up 11 percent from the previous quarter. Excluding an extraordinary gain from land sales, core profit would be 918 million baht, down 24 percent year-on-year but up 19 percent quarter-on-quarter. The decline in core profit from a year ago is because property business revenue is expected to fall 17 percent, due to slower transfers of low-rise projects and a drop in the property business gross margin to 28.0 percent from the use of promotions to stimulate sales. Meanwhile, core profit rose from the previous quarter off a low base in the first quarter, as transfers recovered 13 percent quarter-on-quarter and the gross margin improved thanks to more transfers of new condominiums. The firm maintains its 2026 core profit forecast at 4.2 billion baht, up 3 percent from a year earlier, with first-half core profit accounting for 40 percent of the full year. The second-half trend should improve from both a year earlier and the first half, driven by higher transfers from new condominium projects and low-rise projects as new launches ramp up. Dao Securities keeps a buy rating with a target price of 1.64 baht, based on a 2026 price-to-earnings ratio of 6.8 times, which is 0.25 standard deviations below the five-year average. The current valuation is attractive, trading at a 2026 price-to-earnings ratio of just 6.4 times, or 0.5 standard deviations below the average, and the firm estimates a first-half dividend similar to last year at 0.05 baht per share.

Asia Plus Securities, or ASPS, recommends investment strategies for volatile markets, focusing on Energy Hedge plays that benefit from oil prices and geopolitical risks, including PTTEP, BCP, TOP, and IVL, alongside safe-haven stocks. It highlights PTTEP, BCP, and MAGURO as top picks for Thai stocks, while for international exposure it favors BABA80 and SPENGY80. Additionally, it suggests SIRI, GULF, and GFPT as other interesting stocks. ASPS sees an opportunity to rotate investments from AI infrastructure plays to downstream users such as Apple, Meta, Alphabet, Xiaomi, and Alibaba. It also flags the AMD Advancing AI 2026 event on July 23 and the IPO of CXMT on July 27, which could drain liquidity and pressure memory chip prices. On the domestic positive side, the government has attracted over 70 billion baht in foreign direct investment from four major Chinese companies. In the EV sector, Xiaomi is setting up an R&D center and Changan is expanding production capacity to 200,000 units per year by 2030. In AI and data centers, Innolight and Eoptolink are preparing to expand factories in Thailand.