By The Nation
The ratings reflect the company’s diverse product portfolio, strong market position in both landed property and condominium segments, and higher contribution from business management income and share profit from its joint ventures (JVs).
The ratings also take into consideration SIRI’s high level of selling and administrative expenses and its aggressive financial leverage.
Fitch said ratings continue to reflect the cyclicality and competitive environment in the residential property development business and the lingering high household debt.
The impact from the introduction of new loan-to-value (LTV) rules by the Bank of Thailand (BOT) may also affect demand for condominiums in the short term.
Diversified product portfolio, with well-accepted brands in residential property market
TRIS Rating views that SIRI’s product portfolio is well-diversified. The company offers condominium, single-detached house (SDH), and townhouse units to different market segments. SIRI’s condominium units cover low- to high-end segments, with selling prices ranging from Bt50,000 to Bt400,000 per square meter.
SIRI offers SDH units under the Kanasiri, Habitia, Saransiri, Burasiri, Setthasiri, Narasiri, and Baan Sansiri brands. Its SDH units are priced from Bt4 million to Bt240 million. Townhouse units are sold under the Habitown, Met Town, Siri Place, Siri Avenue, Town Avenue, and B Avenue brands. SIRI offers townhouse units with unit prices ranging from Bt2 million to Bt6 million.