PETALING JAYA: Sime Darby Property Bhd (SDP), which is confident of exceeding its revised annual sales target of RM1.4bil this year, achieved a revenue of RM592.63mil for its third quarter ended Sept 30, compared with RM850.03mil in the previous corresponding period.
In a statement yesterday, the property developer said revenue in the quarter was an increase of 105.6% compared with the preceding quarter.
“The group, however, recorded a loss of RM358.6mil for the third quarter and RM456mil for the nine-month period under review, mainly due to impairment of inventories at the Battersea Power Station project and the property development segment.
“Excluding the aforesaid impairment of inventories, the group’s operating performance saw improved results across all its business segments, with a profit before interest and tax of RM92.6mil for the third quarter, representing a more than four-fold increase, and RM63.7mil for the nine-month period under review.”
SDP said the operating performance of the property development segment improved significantly to a profit of RM110.2mil, as compared with the loss of RM5.1mil in the preceding quarter, excluding the impairment of inventories.
“This was driven by the higher sales of new launches and ongoing projects, as well as on-site development activities in line with the easing of lockdown restrictions.”
SDP group managing director Datuk Azmir Merican said the group’s third-quarter operating performance demonstrated the stability of its core business segments and the resilience of its organisation.
“I am pleased to report that within the nine-month period, we have achieved total sales of RM1.3bil and am confident of exceeding our revised annual sales target of RM1.4bil.”
Acknowledging the ongoing Covid-19 pandemic, Azmir added that SDP had initiated the process of proactively assessing the value of its assets to ensure prudent measures were in place to reflect the evolving market conditions.
“Given the uncertainty with respect to the pandemic and its related economic consequences, assessments will continue to be made to ensure the group will be on a stronger footing as the overall economic environment gradually recovers.”
Riding on the national Home Ownership Campaign that was reintroduced in June 2020, SDP said it had intensified its marketing and sales efforts, garnering total bookings of RM1.1bil as at Oct 31,2020.
“Take-up rates have been encouraging, with launches of residential homes such as Elmina Green Three and Serenia Ariya achieving 100% take-up on the launch weekend.
“Aligned with the group’s plan to broaden the funding structure for its working capital and support future business growth, SDP has also revised its RM4.5bil Islamic medium-term notes programme based on the syariah principle of Musharakah to incorporate terms for the potential issuance of an Asean Sustainable and Responsible Investment Sukuk, which has a credit rating of AA+IS and a stable outlook accorded by Malaysian Rating Corp Bhd.”
SDP said its resilient financial position and revenue visibility, supported by a moderate net gearing level of 0.26 times and unbilled sales of RM1.5bil, put it in good stead to ride out market uncertainties.
SDP also declared a first interim dividend of one sen per share for the financial year ending Dec 31,2020, to be paid on Dec 22.
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