SD Property clocks RM118.41mil net profit on RM978.69mil revenue in Q1

New Straits Times

28-05-2025

KUALA LUMPUR: Sime Darby Property Bhd (SD Property) posted a net profit of RM118.41 million in the first quarter ended March 31, 2025 (1Q25) from RM123.58 million a year ago, on the back of lower revenue.
SD Property's revenue for the quarter eased to RM871.62 million from RM978.69 million previously, the group's filing to Bursa Malaysia showed.
This was due to a 12.7 per cent reduction in revenue from property development segment.
Its earnings per share came in lower at 1.74 sen compared to 1.82 sen in 1Q24.
Despite the lower revenue, SD Property said the group sustained its profitability, supported by a turnaround in the investment and asset management segment coupled with profit from compulsory land acquisition, which offset the lower segment results from property development segment and leisure segment.
It said the result was enhanced by lower finance costs due to higher interest capitalisation, in line with the increase in qualifying assets as well as lower marketing and selling expenses driven by more cost-effective promotional efforts during the quarter.
On a segmental basis, the group's property segment revenue fell 12.7 per cent to RM808.3 million from RM925.6 million a year ago.
This was due to lower financial progress from industrial products, as they had yet to meet the revenue recognition criteria.
The investment and asset management segment delivered a strong performance in current financial period, with revenue rising by 33.3 per cent to RM38.7 million from RM29.1 million a year ago, driven by the retail sub-segment.
Its revenue for the leisure segment increased modestly by 2.2 per cent to RM24.5 million from RM24.0 million supported by higher banqueting and event-related activities, particularly in March in conjunction with the Ramadhan season.
SD Property launched a total gross development value (GDV) of RM656.5 million in 1Q25, comprising 38 per cent residential landed (RM252.1 million), 32 per cent industrial (RM209.5 million), and 30 per cent commercial (RM194.9 million).
The group recorded RM927.5 million in sales for 1Q25, achieving 26 per cent of its full-year target of RM3.6 billion.
SD Property's unbilled sales increased to its highest level since 2017 at RM3.8 billion, securing clear earnings visibility for the next three years.
Unsold GDV for completed inventories remains low at RM227.2 million, while cash balances remained healthy at RM714.4 million.
The group's net gearing ratio of 27.9 per cent as at March 31, 2025 remains well-capitalised for growth.
Commenting on the financial performance, SD Property group managing director and chief executive officer Datuk Seri Azmir Merican said FY25 was off to a solid start, building on the group's record performance last year.
"This quarter's results were anchored by margin improvement, firm sales momentum, and rising contributions from our investment and asset management segment," he said in a separate statement.
Looking ahead, Azmir said SD Property is positioning itself for sustained performance across all business segments.
"As we enter the final year of our SHIFT25 strategy, our focus sharpens on executing with discipline, unlocking value across our portfolio, and strengthening recurring income to deliver sustainable growth," he noted.