We anticipated that 2020 would be worse and rougher ride than the tough 2019.

Sure enough, the COVID-19 war with mankind was pervasive and intense, to the extent that many businesses were brought down on their knees. Although not as hard hit compared to some industries, the property sector was impacted by the sense of uncertainty led by the lack of visibility on how bad and how long the impacts would be. Though NVD’s revenue and earnings contracted during the year, we remain confident that the potentials of our asset base are high enough to get us through this crisis.

COVID-19-plagued Results

For NVD, apparent shocks were observed in 1Q20 with one of the lowest quarterly WALKs recorded. Devising technology to cope with the New Normal, relatively higher demands were captured in 2Q20 through online marketing and sales platform. Although the conversion rates improved, the appetites of home-buying, for most people, were lost due to uncertainty of their future household incomes. Virtually, there was no visibility on how long the detrimental impacts would linger.

Opportunity in Every Crisis

A total of 20 units of Banyan Tree Residences Riverside Bangkok (“BTRRB”) were sold in 3Q20 alone. Real foreign demands for luxurious riverfront condominiums were brought in as Bangkok appeared to be “safe haven” by its top global ranking in handling of COVID-19 in July 2020. For the entire year, BTRRB recorded a total sales of 24 units worth over Bt.1,300m, 21 units of which were transferred promptly within the year with remaining 3 backlog units for transfers in 1Q21. As such, BTRRB contributed 59% to FY20 Revenues from Sales of Real Estates. Its hefty margins helped absorb the other consolidated quarterly losses.

Unlocking Asset Value

NVD had accumulated and retained large landbanks over the years. Even on cost basis, the total assets had risen 133% over the past four years. The Township Development Strategy had not been implemented quick enough for these high potential landbanks. Now that the issue at the shareholding level has completely resolved, we are striving full speed ahead in unlocking these assets values. Residential landbanks would be developed into projects with differentiated products ranging from mid- to high-end, leveraging on NVD’s stronghold in the Natural Modern segment. In creating perfect townships, landbank which suitable for commercial developments would gradually be developed into retail projects for new businesses, either through joint investments or full reliance of the partners’ expertise.

On behalf of NVD management team, we would like to express our sincere appreciation and gratitude to shareholders, joint venture partners, business partners, customers, staffs, financial institutions, and all stakeholders for your continued trust and supports. As the original Founder of Nirvana Development, I am confident that NVD’s asset base is sufficiently strong and liquid to take us through the rough ride.

Mr. Sornsak Somwattana

Chief Executive Officer