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- The group achieved its highest half-year sales performance, reaching RM2.1 billion for 1HFY2024, marking a 40% increase from RM1.5 billion in the same period last year.
ARA DAMANSARA (Aug 22): Sime Darby Property Bhd delivered record results for the first six months ended June 30, 2024 (1HFY2024), marking its strongest half-year performance since the 2017 demerger.
The group registered a 59% increase in revenue to RM2.2 billion, while operating profit, profit before tax, and profit after tax and minority interest more than doubled year-on-year to RM532.2 million, RM446.3 million, and RM285.5 million, respectively.
The group’s financial performance was primarily attributed to the sustained sales momentum across a diversified product mix and improved site progress within the Property Development segment.
The group achieved its highest half-year sales performance, reaching RM2.1 billion for 1HFY2024, marking a 40% increase from RM1.5 billion in the same period last year. In 2QFY2024 alone, revenue improved by 75% YoY to RM1.2 billion, while PBT grew by 132% to RM265.6 million.
"Our first half results have been exceptional, demonstrating our capacity to strategically align with market demands and enhance our operational efficiencies. The notable contributions from our industrial, residential high-rise and residential landed segments have been instrumental in reaching 60% of our RM3.5 billion sales target, underscoring the effectiveness of diversifying our product mix,” said Sime Darby Property’s group managing director, Datuk Seri Azmir Merican.
The company announced plans in May 2024 to construct Google's hyperscale data centre, marking its entry into the data centre asset class.
The 20-year lease, valued at RM2 billion with options for renewal, not only strengthens Sime Darby Property’s market presence but also taps into new opportunities in the rapidly expanding data centre sector.
“This approach has not only marked this period as one of our strongest since the demerger but also solidifies our commitment to our SHIFT25 targets. By focusing on agility and growth, we adapt to market challenges and ensure long-term value creation,” added Azmir.
The Property Development segment saw impressive growth with revenue rising to RM2.1 billion, a 62% increase from the same period last year. This was primarily driven by heightened sales activity and on-site development progress from major townships such as Bandar Bukit Raja, Serenia City, City of Elmina, KLGCC Resort, and Ara Damansara township, coupled with contribution from non-core land monetisation in Selangor leading to an overall increase of 133% YoY PBT to RM476 million.
The Investment & Asset Management segment’s revenue increased by 11% to RM58.1 million attributable to higher occupancy rates, which reached 96%, and positive rental reversions at KL East Mall. Despite these gains, the segment faced challenges, with share of losses from joint ventures contributing to a loss before tax of RM29.5 million.
As of June 30, 2024 Sime Darby Property maintains unbilled sales of RM3.7 billion, ensuring revenue stability for the next three years. Completed inventories reduced by 20.7% to RM369.6 million from RM466.3 million in the previous quarter. Cash balances remain healthy at RM603.7 million coupled with a net gearing ratio of 22.3%.
In 1H FY2024, the group launched products totalling RM2.3 billion in gross development value, achieving 59% of the full-year target of RM3.9 billion. Industrial products accounted for 37% of the launches, followed by residential high-rise at 33% and residential landed at 21%.
"Our strong H1 performance indicates that our strategic initiatives are well-positioned. We are on course to achieve our targets and create value for all stakeholders by seizing current market opportunities while ensuring long-term growth and sustainability,” said Azmir.
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