S P Setia president and chief executive officer Datuk Choong Kai Wai.
PETALING JAYA: Land disposals worth over RM1bil led to a surge in S P Setia Bhd’s profit before tax (PBT), rising by 2.3 times year-on-year to RM853mil in the nine months ended Sept 30, 2024 (9M24).
In the nine-month period, the property developer sold lands in Glengowrie, Semenyih; Taman Pelangi Indah, Johor Bahru; and Setia Alam, Shah Alam that yielded RM1.27bil and RM634mil in revenue and profit contributions, respectively.
Additionally, higher revenue from both central and southern regions also contributed to the overall improved performance, said S P Setia in a statement.
“Paired with effective cost management initiatives, this solid performance underscores the group’s ability to navigate market challenges and achieve sustained profitability,” it added.
S P Setia noted that its property development segment achieved a total revenue of RM4.03bil and PBT of RM799.8mil in 9M24, “significantly higher” than the performance last year.
In 9M24, the group recorded total sales of RM3.2bil, with local projects contributing RM3bil.
About 94% of the sales were driven primarily by the southern and central regions, bringing in RM1.58bil and RM1.37bil, respectively.
As of Sept 2024, S P Setia has locked in RM556mil of sales in the pipeline.
The property development segment contributed RM477mil, while the Setia Alaman industrial segment added RM79mil.
For the remainder of the year, the group aims to launch an estimated RM1.97bil in residential, commercial, and industrial properties – with over 62% concentrated in the central region.
On the international front, S P Setia has launched its latest Australian project, ATLAS Melbourne, a 73-storey mixed development located at 383 La Trobe Street in Melbourne’s central business district.
With a gross development value (GDV) of A$886.7mil (approximately RM2.7bil), this project will progress in stages.
Phase 1 construction is slated to start in the first half of 2026, with completion expected by 2028. The remaining phases are scheduled for completion by mid-2029.
“ATLAS Melbourne marks a significant milestone in our international expansion strategy, reflecting our confidence in the Australian market,” said S P Setia president and chief executive officer Datuk Choong Kai Wai.
With 42 ongoing projects and unbilled sales totalling RM3.5bil as of Sept 30, 2024, the group said it has strong earnings visibility for the short- to mid-term.
S P Setia’s next significant investment in Kuala Lumpur is the Setia Federal Hill Phase 1 project, with an estimated GDV of RM1.4bil.
The project is undertaken in partnership with Mitsui Fudosan. The official launch is expected in early 2025.
S P Setia also highlighted that its net gearing ratio continues to strengthen over the past few quarters to 0.35 times in the third quarter of 2024, compared to 0.41 times in the preceding quarter.
This was due to the continuous effectiveness of the group’s debt management and capital allocation strategies.
