Land and Houses raises AWC target to 3.46 baht after asset sale to AWR trust

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Summary · why it matters

Land and Houses Securities has raised its target price for Asset World Corp, or AWC, to 3.46 baht from 3.20 baht, while maintaining a speculative buy recommendation, after AWC prepared to sell five freehold assets into the AWR trust: Banyan Tree Krabi, Banyan Tree Koh Samui, Meliá Koh Samui, Pattaya Marriott Resort & Spa and The Empire. The minimum combined value is approximately 48.449 billion baht, higher than the book value of about 33.6 billion baht at the end of 2025. The five assets generated combined revenue of approximately 3.5 billion baht and EBITDA of about 1.84 billion baht in 2025. From this transaction, AWC expects to recognise a special pre-tax gain on the asset sale of approximately 10 billion baht, after adjusting its investment proportion in AWR to 28%, and expects to receive net cash of approximately 32 billion baht after deducting the investment adjustment and taxes. If this is used to repay all debt, the interest-bearing debt-to-equity ratio could fall from about 1.0 times to 0.6 times. AWC still has nine more projects under study for future sale into the trust, such as Marriott Surawongse, Marriott Marquis Queen's Park and Asiatique.

Impact on assets 2

Real Estate▲
Asset World Corp Public Company Limited
AWC
▲ PositiveCapitalrelevance

AWC will sell five freehold assets into the AWR trust for ~48.4bn baht, booking a ~10bn baht pre-tax gain and cutting debt-to-equity from 1.0x to 0.6x.

Financials▲

Off-coverage companies 1

AWC Lifestyle Properties REITi
Private▲ PositiveCapitalrelevance

AWR trust is the buyer of AWC's five freehold hotel assets worth ~48.4bn baht, expanding its asset base.