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3BB INTERNET INFRASTRUCTURE FUND — Management Reports 2024
Nov 1, 2024
75066_rns_2024-11-01_8e94625f-9e24-4e22-8541-54c05beaf09f.pdf
Management Reports
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3BB Internet Infrastructure Fund Management Discussion & Analysis for Q3/24
1 November 2024
QUARTERLY HIGHLIGHTS
Translation
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Total income in Q3/24 was THB 1,884.66mn, decreased 19.36% YoY (Rental fee for the Amended and Restated Rental Assurance Agreement, collected until 24 August 2023) and increased 0.15% QoQ.
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Net investment income in Q3/24 was THB 1,474.11mn, decrease of 23.96% YoY (The mainly caused from the Rental rate for the Amended and Restated Rental Assurance Agreement was THB 802.76 per core kilometer per month, which will be collected until 24 August 2023 reflected the resolution of the EGM # 1/2023) and decrease of 1.38% QoQ.
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As of 30 September 2024, Net Asset Value (NAV) was THB 64,845.82mn, equivalent to THB 8.1057per unit.
FINANCIAL PERFORMANCE
| (THB mn) | Q3/2024 | Q3/2023 | % Change (YoY) |
Q2/2024 | % Change (QoQ) |
|---|---|---|---|---|---|
| Total income | 1,884.66 | 2,337.25 | (19.36)% | 1,881.81 | 0.15% |
| Rental income | 1,857.33 | 2,313.43 | (19.72)% | 1,857.33 | 0.00% |
| Interest income | 27.33 | 21.05 | 29.83% | 24.48 | 11.64% |
| Other income | 0.00 | 2.77 | (100.00)% | 0.00 | 0.00% |
| Total expenses | 410.55 | 398.54 | 3.01% | 387.11 | 6.06% |
| Fund management fee and expenses | 23.85 | 28.27 | (15.63)% | 24.45 | (2.45)% |
| Operating expenses | 173.49 | 140.57 | 23.42% | 144.05 | 20.44% |
| Finance costs | 209.87 | 224.06 | (6.33)% | 213.27 | (1.59)% |
| Other expenses | 3.34 | 5.65 | (40.88)% | 5.34 | (37.45)% |
| Net investment income | 1,474.11 | 1,938.71 | (23.96)% | 1,494.70 | (1.38)% |
| Net realised gains from investments | 0.00 | 0.00 | 0.00% | 0.00 | 0.00% |
| Losses from changes in fair value of investments | (300.10) | (12,200.04) | 97.54% | (1,799.87) | 83.33% |
| Increase(Decrease) in net assets from operations | 1,174.01 | (10,261.33) | 111.44% | (305.17) | 484.71% |
Q3/24 PERFORMANCE
TOTAL INCOME
Total income for Q3/24 was THB 1,884.66mn, decreasing 19.36% YoY and increasing 0.15% QoQ, mainly came from rental income from Optical Fiber Cables of THB 1,857. 33mn, decreasing 19.72% YoY ( Rental fee for the Amended and Restated Rental Assurance Agreement, collected until 24 August 2023) and there is no change on QoQ. Interest income was THB 27.33mn, increasing 29.83% YoY and increasing 11.64% QoQ. Other income decreased by 100.00% YoY.
TOTAL EXPENSES
Total expenses in Q3/24 were THB 410.55mn, increasing 3.01% YoY and increasing 6.06% QoQ. Fund management fee and expenses were THB 23.85mn, decreasing 15.63% YoY and decreasing 2.45% QoQ. Operating expenses were THB 173.49mn, increasing 23.42% YoY and increasing 20.44% QoQ (composed of Optical Fiber Cables maintenance expenses THB 109.65mn, right of way expenses THB 32.41mn insurance expenses THB 2.26mn and expenses and rental fee relating to subduct for the OFCs relocation THB 29.17mn). Finance Costs were THB 209.87mn, decreasing 6.33% YoY and decreasing 1.59% QoQ. Other expenses were THB 3.34mn, decreasing 40.88% YoY and decreasing 37.45% QoQ.
MD&A for Q3/24
1
3BB Internet Infrastructure Fund
1 November 2024
Management Discussion & Analysis for Q3/24
NET INVESTMENT INCOME
The Fund recorded net investment income of THB 1,474.11mn in Q3/24, decreasing 23.96% YoY (The mainly caused from the Rental rate for the Amended and Restated Rental Assurance Agreement was THB 802.76 per core kilometer per month, which will be collected until 24 August 2023 reflected the resolution of the EGM # 1/2023) and decreasing 1.38% QoQ. Losses from changes in fair value of investments were THB 300.10mn. (In September 2024, the Fund engaged an independent appraiser to appraise the fair value of the investments. The Fund revalued such investments to be new fair value of THB 73,200.00mn, resulting in losses from changes in fair value of investments THB 300.00mn from this appraisement). Net assets from operations were increased THB 1,174.01mn, up 111.44% YoY and 484.71% QoQ.
BALANCE SHEET
| THB mn | 30-Sep-24 | 30-Jun-24 |
|---|---|---|
| Investment in OFCs | 73,200.00 | 73,500.00 |
| Investment in securities at fair value and Cash at bank | 3,823.40 | 4,164.43 |
| Other assets | 8.64 | 12.87 |
| Total Asset | 77,032.04 | 77,677.30 |
| Total Liabilities | 12,186.22 | 12,485.48 |
| Net Asset Value | 64,845.82 | 65,191.82 |
| Capital Received from Unitholders | 71,083.80 | 72,603.80 |
| Retained Deficits | (6,237.98) | (7,411.98) |
| NAV per Unit (THB) |
8.1057 |
8.1489 |
Total assets of 3BBIF as of 30 September 2024 stood at THB 77,032.04mn. The main component was Investment in Optical Fiber Cables (OFCs) of THB 73,200.00mn, Investment in securities at fair value and cash at bank of THB 3,823. 40mn and other assets of THB 8.64mn. Total liabilities stood at THB 12,186.22mn. Net Asset Value (NAV) as of 30 September 2024 was THB 64,845.82mn, equivalent to THB 8.1057 per unit.
Long-term loan repayment amount detail for the year 2024
| (THB mn) | Q1/2024 (17th) |
Q2/2024 (18th) |
Q3/2024 (19th) |
Q4/2024 (20th) |
Total 2024 |
|---|---|---|---|---|---|
| Long-term loan repayment amount | 325.00 | 325.00 | 325.00 | 325.00 | 1,300.00 |
3BBIF had long-term loan repayment in amount of THB 325.00mn. for Q3/24.
DISTRIBUTION TO UNITHOLDERS
The Fund has a policy to pay dividends to the unitholders not less than twice a year, in the case that the Fund has a sufficient retained earnings. Any dividend distributed to the unitholders is not less than 90% of adjusted net profit in each financial year.
As the Fund recorded retained deficits amount THB 6,237.98mn in this quarter, distributable payout for Q3/24 of THB 0.1600 per unit will be paid in form of capital return. XN is on 13 November 2024, book closing date is on 15 November 2024 and payment is scheduled on 29 November 2024.
MD&A for Q3/24
2
3BB Internet Infrastructure Fund
Management Discussion & Analysis for Q3/24
1 November 2024
History of Dividend Payment and Capital Return
| Period | No. | Dividend Rate (THB/Unit) |
No. | Reduction of Capital Rate (THB/Unit) |
Total (THB/Unit) |
|---|---|---|---|---|---|
| Year 2015 | 1-4 | 0.7400 | - | - | 0.7400 |
| Year 2016 | 5-8 | 0.9000 | 1-2 | 0.1247 | 1.0247 |
| Year 2017 | 9-12 | 0.9100 | 3 | 0.0237 | 0.9337 |
| Year 2018 | 13-16 | 0.9000 | - | - | 0.9000 |
| Year 2019 | 17-20 | 0.9000 | - | - | 0.9000 |
| Year 2020 | 21-24 | 0.9900 | - | - | 0.9900 |
| Year 2021 | 25-28 | 0.9500 | - | - | 0.9500 |
| Year 2022 | 29-32 | 0.9200 | - | - | 0.9200 |
| Year 2023 | 33-34 | 0.4600 | 4-5 | 0.3200 | 0.7800 |
| Quarter 1 Year 2024 | - | - | 6 | 0.1900 | 0.1900 |
| Quarter 2 Year 2024 | - | - | 7 | 0.1900 | 0.1900 |
| Quarter 3 Year 2024 | - | - | 8 | 0.1600 | 0.1600 |
| Total | 1-34 | 7.6700 | 1-8 | 1.0084 | 8.6784 |
Note: Dividend for natural persons were exempted from personal income tax for 10 tax years from the establishment of the Fund (The Fund was registered in the Year 2015). In accordance with the rules, procedures, and conditions as announced by the notification of Director-General of the Revenue Department under the criteria and conditions of the Royal Decree issued under the Revenue Code (No. 544) B.E. 2555. From now on, dividends shall be subject to a 10% withholding tax.
Other Information
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At currently, OFCs transferred to 3BBIF were totally 1,680,500 core kilometers. The assets consist of initial assets with the amount of 980,500 core kilometers and additional assets amount of 700,000 core kilometers.
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In 2024 rental rate for the Amended and Restated Main Lease Agreement is THB 460.51 per core kilometer per month (The change in the Thailand CPI in 2023 announced by the Ministry of Commerce on 5 January 2024 was +1.23%, therefore the rental rate in 2024 will be increased 1.23%.)
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OFCs maintenance fee for the period of 2024 is THB 260.95 per core kilometer per year.
MD&A for Q3/24
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