Nearly all Stock Exchange of Thailand (SET)-listed residential developers with quarterly revenue of at least 2.5 billion baht reported year-on-year declines in both revenue and net profit in the first quarter, mainly due to the economic slowdown and higher mortgage loan rejection rates.

Even though some developers have additional revenue streams, particularly from the hotel business that has benefited from a stronger tourism sector compared to the residential market, they were still unable to prevent a decline in consolidated revenue.

The company that posted the highest revenue and net profit was AP Thailand, with 7.7 billion baht in revenue and 864 million baht in net profit, down 17% and 33%, respectively, from the first quarter of 2024.

It was followed by Sansiri, which reported 6.9 billion baht in revenue and 813 million baht in net profit, representing year-on-year drops of 31% and 38%, respectively.

However, Sansiri's net profit was slightly below that of Land & Houses (LH), which recorded 837 million baht from revenue of 4.72 billion baht.

LH's revenue and net profit declined by 29% and 32% year-on-year, respectively, despite rental and service income accounting for 43% of its total revenue, or around 2 billion baht.

Its rental portfolio includes the Terminal 21 Rama 3 shopping mall and the Grande Centre Point Surawong hotel in Thailand, along with three apartment projects and two hotels in the US.

The main drag on LH's first-quarter performance was a steeper decline in revenue from the residential development business, which plunged 39.5% year-on-year, compared to an 8.7% drop in rental and service income.

Last week, LH reported the sale of two apartment properties, Parc at Pruneyard and Revere Campbell in Campbell, California, for US$240.5 million, or approximately 7.85 billion baht.

A profit of 701 million baht from the transaction will be recognised in the second quarter of 2025.

Pruksa Holding ranked fourth in revenue with 3.7 billion baht, but came last in net profit, posting just 13 million baht, a year-on-year decline of 11% and 80%, respectively.

"The low profit was primarily due to discounts on units in long-standing unsold projects, but it marked an improvement from the loss recorded in the fourth quarter of last year," said Jintana Insee, Pruksa's acting group chief financial officer.

Supalai ranked fifth, posting 3.69 billion baht in revenue and 404 million baht in net profit, down 21% and 34% year-on-year, respectively.

It was followed by Singha Estate, which reported 3.36 billion baht in revenue and 70 million baht in net profit, representing year-on-year declines of 17% and 32%, respectively.

Singha's main revenue stream came from its hotel business, contributing 2.9 billion baht, or 87% of total revenue, down 4% year-on-year due to the temporary closure and renovation of The Grand Hotel Leicester in the UK.

Meanwhile, revenue from property sales, which accounted for 12% of the total, dropped by 57% to 420 million baht, as residential revenue declined by 46% and there were no industrial land sales, compared with 209 million baht recorded in the same period last year.

Frasers Property (Thailand) ranked seventh, posting 2.86 billion baht in revenue, down 16% year-on-year, but recorded a 33% increase in net profit to 220 million baht. This was supported by a gain of 107 million baht from the sale of factories and land, up from 71 million baht in the same period last year.

SC Asset Corporation was in last place with quarterly revenue of 2.67 billion baht, down 33%, and a net profit of 112 million baht, down 38%.

All remaining SET-listed residential developers, 25 in total, reported quarterly revenue below 2 billion baht, with 14 posting losses and 11 remaining profitable. However, only three saw a year-on-year increase in profit.

According to the Housing Business Association, the slowdown in the residential market stems from a sluggish economy and a rising average mortgage rejection rate, which reached a record high of 45% in the first quarter of 2025 -- up from 40% in the fourth quarter of 2024.