AOT’s Stocks Face Turbulent as Treasury Aims to Raise Land Fees

The share price of Airports of Thailand took a hit this morning from the report that the Treasury Department is considering raising rent on the leased government property (Ratchaphatsadu Land), which could have a direct impact on the Thai airport operator. 


Airports of Thailand Public Company Limited (SET: AOT) is a major lessee of the Treasury Department. The commercial revenue of the department per year is around THB 8 billion of which THB 5 billion was collected from AOT in the manner that the Ratchaphatsadu Land’s rental fee has not been raised since before the COVID pandemic. 

Mr. Julapun Amornvivat, Thailand’s Deputy Minister of Finance, has requested the Treasury Department to re-evaluate the Ratchaphatsadu Land, which is in the possession of the government sector as to whether it is used to its full potential or not since there has been some land that were vacant and some that were believed to be priced lower than what it should have been. The matter is now being discussed by authorities.


The Treasury Department is restructuring the Ratchaphatsadu Land’s rental contract and is set to officially announce the plan in 2Q24, as it will be effective when the current contract ends. The rental contracts for each sector started and ended in different periods, such as AOT, which signed the rental contract in 2021 until 2025. As the new contract is expected to be announced this year, the new price, if higher, will be collected in accordance with the newer contract in 2026. The new draft has been prepared for discussion. 


The report raised concerns from investors that higher rental fees could diminish the company’s profitability in the future. The share price lost as much as 2% in the morning session before paring some losses to finish the early session with 0.83% down. 

However, several sources close to the matter said that the land fees between the Treasury and AOT will not be raised.