Sime Darby Property posts RM51.84mil in 1Q

Sime Darby Property group managing director Datuk Azmir Merican

KUALA LUMPUR: Sime Darby Property Bhd (SDP) posted a lower net profit of RM51.84mil in the first quarter ended March 31 against RM66.04mil a year ago.

Revenue for the quarter fell 18.4% to RM480.33mil from RM588.77mil last year.

In a statement, the developer said it registered a sales achievement of RM888.9mil in the first quarter.

It said the sales achievement for the quarter saw an increase in contribution from its industrial segment from 23% in the previous quarter to 31%, buoyed by sales of industrial facilities across the group’s major Klang Valley townships, with the balance mainly comprising residential segment products.

The gross development value (GDV) for new product launches in FY22 remains at RM2.8bil of which RM383.5mil worth of products was launched in the first quarter.

SDP said residential landed launches excluding statutory products in 1Q22 achieved an exceptional average take-up rate of 96%, with industrial products fully taken up as of May 8.

“We continue to maintain financial discipline and undertake value engineering with design-to-cost principles, in view of the rising cost of materials, which we expect to persist for the rest of the year compounded with labour shortages, to preserve margins and expedite construction progress.

“Increasing the group’s recurring income contributions is also essential to

sustain the business for the long-term, as well as landbank management and monetisation,” group managing director Datuk Azmir Merican said.

On its Industrial Development Fund, Azmir said: “We have secured preliminary commitments of 50% for our Industrial Development Fund which has a fund size of up to US$250mil, with efforts underway for the first close, thereafter which we can expect its maiden contribution in the second half of FY22.”

SDP envisages a positive outlook for the real estate market for the rest of the financial year, in particular the residential and industrial segments as complemented by the easing of restrictions in the endemic phase.