Bualuang Securities said visits to Central Khonkaen and Central Khonkaen Campus reinforced its confidence in CPN's mall expansion strategy, because opening new centres has not siphoned off as many customers from existing centres as feared. Central Khonkaen Campus, which opened in May 2026, has already exceeded management's target of 20,000 visitors per day. Meanwhile, footfall at the original Central Khonkaen, which had fallen 10 to 15 percent year on year in June and July, was down only 1 to 3 percent in August. This is despite the new centre having leasable area equal to 42 percent of the original and sitting just 3 kilometres away. The two centres serve different customer groups, with the Campus focused on the university and medical base, alongside a mixed-use project comprising the PHYLL Khonkaen condominium, which sold out within a week, and a GO! Hotel. The original centre still has an occupancy rate of 97 percent and rent growth averaging about 2 percent a year, while the Campus has an occupancy rate of only 80 to 85 percent against a year-end target of 90 percent, and 55 percent of its leases are revenue-share agreements, above CPN's portfolio average of about 50 percent. Overall, third-quarter 2026 operating results remain strong, with mall footfall up 3 to 4 percent year on year in July and August and tenant sales up 7 to 9 percent year on year. Late-September flooding may dampen momentum somewhat, but the impact on the quarter is still limited. For 2027, core profit is expected to grow 9 percent year on year on net leasable area growth of about 5 percent year on year, against an average of just 2 percent a year over the past three years, with two new centres opening in the first and second quarters of 2027. Another boost is the sale of assets into CPNREIT, which is expected to receive unitholder approval before the end of 2026 and be completed in the first half of 2027, helping to release capital from mature assets and increase financial flexibility for new projects. The broker maintains its Buy rating with an end-2027 target price of 80 baht.
Central Pattana Public Company LimitedBroker maintains Buy with 80 baht target after Khon Kaen visits show new centres are not cannibalising existing ones, with footfall and tenant sales up and 2027 core profit growth expected at 9%.
CPN Retail Growth Leasehold REIT