Sime Darby Property records revenue of RM2.4 bil for 9M FY2023, achieves RM2.5 billion sales

• The group's revenue for 3QFY2023 outperformed the preceding quarter by 52.4% at RM1.0 billion, with PBT doubling to RM228.5 million from RM114.3 million.

SELANGOR (Nov 24): Sime Darby Property Bhd  registered revenue of RM2.4 billion for the nine months ended Sept 30, 2023 (9M FY2023), marking a 35.8% increase year-on-year.

The group recorded profit before tax (PBT) of RM440.7 million and profit after tax and minority interest (PATAMI) of RM276.7 million, reflecting a 36.4% and 30.1% increase respectively.

The group also achieved RM2.5 billion sales in the period under review and is on track to surpass its FY2023 sales target of RM2.7 billion.

The group's revenue for 3QFY2023 outperformed the preceding quarter by 52.4% at RM1.0 billion, with PBT doubling to RM228.5 million from RM114.3 million.

The strong quarter performance is driven by the property development segment which saw a significant improvement with 56.7% increase in revenue to hit RM1.0 billion, driven by higher sales from residential and industrial products and increased on-site progress development.

The property development segment registered 38.7% YoY revenue growth, reaching RM2.3 billion as compared to RM 1.6 billion last year. The segment’s performance was largely due to improved site progress and encouraging sales achieved; further supported by opening unbilled sales of RM3.6 billion as compared to RM2.4 billion last year. Concurrently, PBT reflected a 55.0% increment, translating to RM424.6 million reflecting the increase in on-site development activities in Bandar Bukit Raja, Nilai Impian, Serenia City, City of Elmina, Hamilton Nilai City and Elmina Business Park townships.

The investment and asset management (IAM) segment maintained its top-line with revenue of RM78.6 million as compared to RM79.3 million in the corresponding period in the previous year.

KL East Mall in the retail sub-segment continues to grow its occupancy rate to 89% as at Sept 30, 2023 compared to 79% recorded a year ago. However, the IAM segment’s PBT was lower at RM17.9 million from RM38.5 million mainly arising from higher share of loss from the Battersea Power Station project in London.

Sime Darby Property diversified its product offerings to substantially enhance its market presence and launched products worth RM3.2 billion in GDV across residential landed, residential high-rise, and industrial.

Residential landed products, Emilia 1 and 2 in Nilai Impian achieved 100% take-ups while Serenia Anisa 1 in Serenia City and Elmina Green 7 in the City of Elmina further underscored the achievement with over 90% take-up rates. In the residential high-rise segment, Teja in Subang Jaya City Centre recorded 99% take-up while industrial products at Elmina Business Park and Bandar Universiti Pagoh achieved full take-ups.

With the GDP expected to grow by approximately 4.0% in 2023, the group positively anticipates the property market outlook to improve in-line with economy, supported by domestic demand.

“The group’s robust financial position, cash reserve of RM661.9 million and net gearing ratio of 27.4% as of Sept 30, 2023 further solidifies its readiness for future endeavours,” stated Sime Darby Property.

"Our sales momentum thus far is indicative of our diverse product offerings with the right pricing at the right locations. The consistent success of our residential landed, residential high-rise and industrial products highlights the market's positive response to our strategic direction and product developments,” said Group Managing Director, Datuk Azmir Merican.

“We have an exciting launch pipeline for Q4 2023 worth approximately RM791.2 million in GDV across our townships, with the strong momentum built up to date, we are confident in our ability to meet our financial and operational targets for the year," he added.

On higher material costs impacting the property market, Azmir told theedgemalaysia.com that the group has shifted to launching more industrial products that offer a better margin compared to landed homes. The group’s gross profit margin increased to 30.2% in 9MFY2023 from 29.8% in 9MFY2022.

“We will face pressure with higher material costs, but as a property developer, we want to sell homes at the right prices" he said. 

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