Sime Darby Property group managing director Datuk Seri Azmir Merican
PETALING JAYA: Sime Darby Property Bhd
(SDP) recorded its strongest nine-month performance to date for the period ended Sept 30, 2024 (9MFY24), driven by strong sales momentum across a diverse product mix.
In a statement, SDP said it reported a 35% increase in revenue to RM3.3bil, while operating profit grew 51% to RM729.5mil.
Pre-tax profit increased by 45% to RM636.8mil and profit after tax and minority interest (patami) grew by 50% to RM413.8mil.
“The group’s robust financial performance was driven by strong sales momentum across a diverse product mix, increased site progress within the property development segment and growing revenue contribution from the investment and asset management (IAM) and leisure segments.
“Sales for the period rose to RM3.2bil, representing a 25% increase year-on-year, achieving 91% of the financial year 2024 (FY24) sales target of RM3.5bil,” said the company.
SDP emphasised that this also marked the highest nine-month sales performance in the group’s history.
Looking forward, SDP said it anticipates a promising outlook for the property sector, supported by positive economic indicators.
“The group is on track to achieve its FY24 sales target, supported by RM3.7bil in unbilled sales and strong cash reserves.
SDP group managing director Datuk Seri Azmir Merican said the group’s continued focus on diversifying its product mix and expanding recurring income streams, in line with its SHIFT25 strategy, positions the company for future growth.
Commenting on the group’s results, he said the group’s robust 9MFY24 results demonstrated growth driven in large part by the property development segment.
“The strategic diversity of our product mix, combined with strong contributions from our key townships and maintaining a healthy gross profit margin of 33% has been critical to this performance.” SDP said its property development segment achieved its highest nine-month revenue, surpassing RM3bil for the first time and reaching RM3.1bil, a 36% increase year-on-year from RM2.3bil.
It said the segment’s pre-tax profit increased by 64% to RM695.4mil, primarily driven by strong sales and financial progress across major townships such as Bandar Bukit Raja, Serenia City, Kuala Lumpur Golf and Country Club Resort, Nilai Impian, and Elmina Business Park.
Additionally, non-core land monetisation activities further strengthened the segment’s performance for the financial period.
Meanwhile, the IAM segment posted a 22% year-on-year increase in revenue, reaching RM95.8mil in 9MFY24.
“The retail sub-segment registered positive growth, with KL East Mall notably achieving an increase in occupancy rates to 98.1% in 9MFY24, up from 89.2% in 9MFY23.
“Additionally, the newly opened Elmina Lakeside Mall also began contributing to revenue, enhancing the segment’s prospects. While the segment's improvements are evident, it continues to face challenges, with a net fair value loss on investment properties and a higher share of losses from joint ventures.” In 9MFY24, SDP said it launched products totalling RM2.9bil in gross development value (GDV), achieving 75% of the full-year target of RM3.9bil.
Industrial products accounted for 47% of the launches, followed by residential high-rise at 27% and residential landed at 19%.
“With a strong average take-up rate of 76% as of Oct 31, 2024, key residential projects included Elmina Green 7, Hype Residences at SJ7 — a transit-oriented development; and The Ophera at KLGCC Resort, alongside developments in other townships.
“The group achieved RM3.2bil in total sales, a 25% increase compared to 9MFY23, achieving 91% of its FY24 sales target. The industrial segment was the top contributor at 32%, which translates to approximately RM1bil in value,” said SDP.
It said the residential high-rise followed closely, contributing 30% of total sales, while the residential landed segment accounted for 20%.
“The commercial segment contributed 14%, approximately RM431.1mil in sales, marking the highest contribution to date for this category.” As at Sept 30, 2024, SDP said unsold GDV for completed inventories remained low at RM221.6mil, while cash balances recorded an increase to RM790.7mil.
“SDP’s solid financial position is further underscored by an improved net gearing ratio of 19.5%, a reduction from 22.3% in the first half of FY24 and the lowest since 2018, demonstrating that the group is well-capitalised for growth.” During the current financial year, SDP said the City of Elmina welcomed two new major developments that underscore its growth as a vibrant urban hub.
“Elmina Lakeside Mall, the group's second wholly owned mall, opened on Aug 22, 2024 with a biophilic design that merges nature with modern retail, achieving a 98% occupancy rate and drawing 180,000 visitors in its first week.
“Adjacent to the mall, the first high-rise serviced apartments in Elmina City Centre, Kanopi Residences is set to launch in fourth quarter 2024.”
