Thai Property: What Q2 could tell us about the rest of the year

Research evidence excerpt

Thai Property: What Q2 could tell us about the rest of the year

Global Research

23 July 2026ab

Thai Property Equities

ThailandWhat Q2 could tell us about the rest of the year

Real Estate

Sukrit Friestad

Retail resilience persists as expectations rise for industrial estates and hotels Analyst

We expect investors to increasingly distinguish between subsectors demonstrating sukrit.friestad@ubs.com

earnings resilience and those where market expectations appear more demanding in the +662-613 5732

coming Q226 results. Commercial property developers continue to benefit from stable

top-line growth and margin expansion, supported by healthy mall traffic, sustained

tenant sales growth and ongoing tenant mix optimisation. By contrast, sentiment

toward industrial estate and hotel operators has strengthened materially in recent

months, despite limited changes to underlying operating fundamentals. Industrial estate

valuations appear to reflect much of the anticipated benefit from data centre related

investment, while hotel operators face growing pressure from a slower tourism recovery

and rising operating costs. In our view, this leaves industrial estates and hotels more

exposed to earnings disappointment, while malls remain the most defensive segment

within our coverage. Our top pick remains with Central Pattana.

Mall top-line growth and margin resilience remain intact

Premium malls are likely to have continued to outperform in Q226 and should continue

to do so in H226, underpinned by mid- to high-single-digit tenant sales growth and

ongoing tenant mix optimisation, which supports both rental productivity and

occupancy quality. Tourist-focused retail assets are also likely to deliver stronger YoY

growth as inbound tourism recovers from a softer base last year. Retail margins should