UEM Sunrise narrows net loss toRM214.3mil in FY21

UEM Sunrise chief executive officer Sufian Abdullah

KUALA LUMPUR: UEM Sunrise Bhd’s net loss has narrowed to RM214.33 million in the financial year ended Dec 31, 2021 (FY21), from RM277.28 million in FY20.

The property developer attributed its performance to the impairment provisions for its inventories as well as its assets and properties, amounting to RM88 million.

Revenue increased to RM1.21 billion from RM1.14 billion in FY20, driven by the higher construction progress and billings mainly from Residensi Solaris Parq in Dutamas; Aspira ParkHomes in Gerbang Nusajaya, Iskandar Puteri; Serene Heights in Bangi; and Kiara Kasih in Mont’ Kiara.

The property developer said revenue in FY21 was also boosted by inventory sales of Estuari Gardens in Puteri Harbour, Iskandar Puteri in Johor and the completion of the sale of several industrial plots in phase three of the Southern Industrial & Logistics Clusters to Pentagon Land Sdn Bhd in December 2020.

UEM Sunrise chief executive officer Sufian Abdullah said the COVID-19 pandemic had impacted the group's operations.

"UEM Sunrise was making progress in terms of recovery and was narrowing its losses in the first half of 2021 compared to the same period in 2020.

"However, the full lockdown imposed on June 1, 2021 compelled the group to stop construction activities, cease operations of retail complexes and shut down sales galleries," he said in a separate statement.

Sufian said the group's product launches were delayed, and projects with a total gross development value of only RM550 million were launched in 2021, while unbilled sales as of Dec 31, 2021 stood at RM2.4 billion.

On its property sales performance, Sufian said the group had exceeded its target of RM1.2 billion in 2021 and aims to achieve sales worth RM1.5 billion in 2022.

"Although we foresee challenges ahead -- the absence of the Home Ownership Campaign, the rise in prices of construction materials and the likelihood of an interest rate hike -- we feel that property sales in general remains strong, premised on our current sales bookings and the type of products we intend to launch this year," he added.

Sufian noted that buying sentiments are expected to improve this year, thus boosting property sales.

On UEM Sunrise's plans in the immediate term, he said the group's landbanking portfolio-rebalancing strategy remains intact as it had identified a few non-strategic lands for divestments this year, adding that the group will continue to source for new landbanks with a quick turnaround to create new pipelines.

"Sustainability also remains a priority. We plan to entrench the ideology throughout the organisation in line with the current global movements and sustainability plans under the 12th Malaysia Plan," he added. - Bernama