WHA Drops 5% after Trust Funds Vote Against Additional Investment in Assets

The share price of WHA Corporation Public Company Limited (SET: WHA) dropped about 5% to THB5.10 per share in the morning session on Thursday after the shareholders of the WHA Premium Growth Freehold And Leasehold Real Estate Investment Trust voted against the agenda for the additional investment in the freehold, leasehold and sub-leasehold rights of immovable properties and other assets in relation to the additional investment assets.

The agenda is part of WHA’s 173,000 sqm asset sales plan worth 4,259 million baht, comprising 43% of its ownership and 57% owned by JV, to WHART this year.

In the meeting, 66.983% of WHART shareholders approved the agenda, but still falling short of 75% required for the agenda to be officially approved.


CGS International Securities (Thailand) stated that results from the meeting were negative to WHA. The brokerage firm checked with WHA and said that the company decided to postpone the asset divestment to WHART with total value of 4,259 million baht including WHA’s owned assets of 1,759 million and JV asset (GCL warehouse) of 2,500 million.

CGSI estimated the impact to WHA’s bottom line of 551.8 million baht, 10.5% downside to our FY24F net profit forecast.  WHA plans to sell these assets in 2025F. CGSI estimated rental income to increase by 135 million baht in 2025F due to the postponement of owned asset monetization. WHA is considering revising the size of asset monetization.

Moreover, CGSI estimated WHA’s higher D/E ratio to 1.34x from 1.2x. The company expects the asset monetization to WHAIR to get approval from unitholders today.  There will be no change in WHA’s expansion plan on industrial land acquisition and Green Logistics.

Additionally, CGSI maintained “Add” recommendation on WHA with a target price at THB6.50 per share.