Sime Darby Property 1Q net profit more than doubles to RM123.6mil

KUALA LUMPUR: Sime Darby Property’s (SDP) unbilled sales of RM3.6bil will provide solid earnings visibility for the next three years.

As at April 28, the developer’s bookings amounted to RM2.4bil, with completed inventories registering at RM466.3mil in gross developmental value (GDV).

“With a healthy cash balance of RM647.1mil and a net gearing ratio of 23.8%, SDP is well-positioned for sustained growth and financial stability,” it said in a statement.

In the first quarter ended March 31, SDP’s net profit more than doubled to RM123.6mil from RM60.7mil in the same period last year, representing an earnings per share of 1.80 sen against 0.90 sen previously.

Revenue jumped 42.8% to a record-high of RM978.7mil since the 2017 demerger versus RM685.3mil last year.

“The group’s 1Q performance has outperformed financial and operational expectations. We are actively diversifying our products and income streams. This quarter, our industrial segment emerged as the top contributor to our overall sales performance,” group managing director Datuk Azmir Merican said in a statement.

During the quarter, the group launched products worth RM820.2mil in GDV. Industrial lots and 2-storey detached factories worth RM588.7mil in GDV were launched in Bandar Bukit Raja 3 Industrial Park, with a take-up rate of 60.6% as of April 28.

Double-storey shop offices worth RM150.2mil in GDV at The Corak in Serenia City was 86.4% taken-up as of April 28.

SDP continued its robust sales momentum into 1Q24, achieving RM955.9mil in sales, reflecting a 16.9% increase compared to Q4 FY23.

The group’s effective product diversification strategy was evident as the industrial segment accounted for 30.2% of the quarter’s total sales, while residential-landed and residential high-rise accounted for 26.7% and 24.5%, respectively.

Commenting on the final close of its inaugural industrial development fund (IDF) fundraising, Azmir said: “We are delighted to announce the final close of the IDF at RM1bil, underscoring the confidence and backing from a diverse group of institutional and foreign investors.”

“The IDF is a Shariah-compliant real estate development fund between SDP and LOGOS SE Asia Pte Ltd to develop 177 acres of industrial and logistics assets in Bandar Bukit Raja.”

Going forward, SDP expects a favourable outlook in FY2024, driven by the robust industrial segment and the general improvement in the residential market.

The group is poised for further growth with the launch of two landmark projects, The Ophera at KLGCC Resort and the Elmina Lakeside Mall.

“Our strong 1Q performance indicates that the group is on the right track with our strategies, product developments, and offerings. SDP guided by its purpose to be a value multiplier for people, businesses, economies, and the planet, and we will maintain the discipline to deliver greater value to our stakeholders,” Azmir said.