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7. Risk in connection with the ability to pay dividend of the Fund
The operation of the Fund has an impact upon the ability to pay dividend of the Fund. Such
operation of the Fund depends on several factors e.g. economic situation both domestic and
international, the ability to manage of the Property Manager, the cost of management of property,
other expenses in relation to the management of property, competition in the real estate business,
changes of law and regulations relating to the property, natural disaster, political situation, etc.
Thus, this may affect the dividend payment of the Fund and the ability to pay a dividend, and the
Fund cannot guarantee that the Fund will be able to pay the dividend or maintain the level of the
dividend payment in future years. In addition, one of the main revenue of the Fund is variable rent
which is depended on an ability to pay the rent of the tenants of the Glow Trinity Silom Building
and ability to pay the rent on the tenants behalf in the case where such tenants are unable to pay
the rent to the Fund. Furthermore, a factor which affects the dividend payment of the Fund is the
ability of the Fund to enforce the security and enforce the defaulting party under the undertaking
agreement. Thus, the volatility of variable rent may affect the dividend payment of the Fund and
may cause the Fund to be unable to maintain the level of the dividend payment in future years.
Additionally, during any accounting year in which the Fund has expenses for renovation and/or
procurement of furniture, fixtures and equipment (FF&E) for the Initial Investment Property, the
dividend of the Fund in such year will be significant decreased comparing with any accounting
year without any expenses for renovation and/or procurement of FF&E.
Example: Chart demonstrating the revenue of the Fund in the case of renovation of the Initial
Investment Property
Profit and Loss After the period of 14 and 15
years commencing from the date
of initial investment
After the period of 29 and 30
years commencing from the date
of initial investment
(Unit : Million Baht (approximately))
14 th year:
renovation and
maintenance
15 th year:
major
renovation
29 th year:
renovation and
maintenance
30 th year:
major
renovation
Total revenue of the lessor 145.05 145.59 191.86 196.59
EBITDA of the lessor 84.03 84.30 110.03 112.37
Information Memorandum of Trinity Property Fund 48