On Monday at 12:23 PM (Bangkok time), the share price of Asset World Corp Public Company Limited (SET: AWC) jumped by 5.73% or THB 0.18 to THB 3.32, with a trading value of THB 369.39 million.
KGI Securities (Thailand) wrote that AWC is set to establish AWC Lifestyle Properties REIT (AWR) as an asset recycling platform aimed at monetizing mature, stabilized assets. This move allows the company to retain ongoing involvement through both REIT investment and post-transaction operations.
Specific structures include AWR-Hs to lease back and operate hotels transferred to the REIT, and AWR-R for managing commercial assets such as The Empire. In addition, AWC will serve as development manager for future projects, earning a 3.5% fee of total development costs.
The initial AWR portfolio will feature five assets—Banyan Tree Krabi, Banyan Tree Koh Samui, Meliá Koh Samui, Pattaya Marriott Resort & Spa, and The Empire—with a minimum disposal value of THB 48.45 billion. This represents a 1.44x price-to-book ratio, unlocking approximately THB 14.85 billion of embedded value before taxes and transaction costs. The Empire forms about 70% of the portfolio’s book value, and there is a pipeline of nine more assets for possible future acquisition.
Proceeds from the asset sales are expected to strengthen AWC’s balance sheet and underpin its THB 100 billion five-year investment plan. The company, with a current net D/E ratio of 0.92x and interest-bearing debt of THB 88 billion, aims to expand its hotel portfolio to 9,300 rooms and increase commercial leasable space to 661,000 sqm by 2030. Part of the capital raised may also be used to support a 40% dividend payout ratio.
KGI views the AWR REIT initiative as a positive for AWC, citing improved capital efficiency, unlocked asset value, and stronger funding. The company’s operations remain robust, with 3Q26 RevPAR up 20% year-on-year and revenue for 4Q26 and 1Q27 (excluding Fairmont) also up 20% year-on-year. Earnings growth in 2H26 is expected to be strong, with momentum carrying into 2027.
Notably, KGI’s forecasts have not yet incorporated the AWR REIT transaction, while AWC is expected to provide further details on the transaction this week
Following these, the brokerage maintains an ‘Outperform’ rating and a THB 3.60 target price, based on 25x 2027 EV/EBITDA (-0.5SD).
