PETALING JAYA: Sime Darby Property Bhd
(SimeProp) is on track to surpass its RM3.6bil sales target for the financial year 2025 (FY25) after recording its highest ever nine-month profit and sales for the period ended Sept 30, 2025 (9M25).
The group’s unbilled sales also rose to its highest level at RM4.1bil as at 9M25, with the cover ratio maintained at one times, on the back of the growing contribution from township development.
“We are certain now that we will exceed the RM3.6bil sales target for FY25.
“Given that there is only six weeks to go before the end of the year, we will not be revising our sales target this year,” group managing director and chief executive officer, Datuk Seri Azmir Merican, said during the group’s 9M25 financial results briefing yesterday.
Azmir said the group is “on track to deliver a strong FY25 where profitability is now at an all-time high”.
“We have kept margins high. This is a result of managing costs and having the right products. The group’s equity ratio is also healthy and the completed stocks are below 7%.
“Our balance sheet is solid and the visibility in terms of the group’s revenue is also at an all-time high with unbilled sales at RM4.1bil,” he said, adding that the company is able to sustain its current momentum.
“The existing trajectory will allow the group to focus on building our recurring income strategy.
“We are focused now on the two hyperscale date centre (DC) projects in the Elmina Business Park, translating the secured lease value of RM7.6bil over the next 20 years,” Azmir said.
About 70% of the group’s RM4.1bil unbilled sales will be converted into recognised revenue and operating cashflow over the next 12 to 24 months. “It’s a healthy mix of the products. As you can see, we outlined the products. We have the formula of 30:30:30, a bit higher concentration on industrial products,” Azmir said.
SimeProp’s pre-tax profit increased by 4% year-on-year (y-o-y) to RM659.1mil in 9M25, marking it the highest nine-month earnings level since 2017.
“Pre-tax profit margin improved to 20.9% in 9M25 from 19.5% in 9M24. The better performance was supported by higher contribution from the investment and asset management (IAM) segment and lower share of losses from joint ventures (JVs),” Azmir said.
In 9M25, the IAM segment posted a revenue growth of 28% y-o-y to RM123.1mil and pre-tax profit grew by more than 100% y-o-y to RM41.5mil.
This was mainly driven by strong retail sub-segment performance led by Elmina Lakeside Mall and KL East Mall, and industrial asset contribution.
In 9M25, the group launched projects worth RM2.5bil in gross development value (GDV). Residential landed products remained the largest contributor at RM1bil (42%) of total launches, followed by industrial at RM548.4mil (22%), residential high-rise at RM520.6mil (21%) and commercial at RM354.7mil (15%).
“The growing commercial component reflects the increasing maturity of the group’s townships, supported by rising demand for lifestyle and retail spaces that enhance surrounding communities.
“Notable launches for the quarter included residential landed products such as Serenia Baleria 1 at Serenia City (GDV: RM145.6mil) and Avira Hills 1 & 2 at Bandar Ainsdale (GDV: RM55.8mil), featuring contemporary two-storey homes designed with flexible layouts to accommodate multigenerational living, and industrial products such as the semi-detached ready built factory in XME Business Park 2 at Nilai Impian 2 (GDV: RM53.2mil),” the property developer said.
The group’s sales performance reached RM3.4bil, marking a 6.7% y-o-y growth, which also represents 93% of its full-year sales target of RM3.6bil.
The industrial segment remained the largest sales contributor, generating RM1.3bil (38%) of total sales.
As at Sept 30, 2025, Sime Darby Property’s net gearing ratio increased to 34%.
Azmir said the group is “very comfortable” with its current net gearing levels, and “will be building up a little bit as we grow recurring income”.
“We are funding the hyperscale DCs, which will require us to expand our balance sheet and take on more debt.
“Our rule is very simple. We will manage net gearing levels very carefully and prudently. We do not borrow for working capital or to pay our own day-to-day expenses. All the borrowings are for expansion purposes and are income-generating assets,” he said.
Azmir added the company will continue to review its exposure and that it has an internal guide on acceptable gearing levels, which he said the group is “well below that”.
“We have room for expansion. We have drawn down on sukuk in 2025. There is a plan that we will draw down one more round in 2026. But at the moment, we are fairly comfortable. Hence, when we need the money and the timing is right, we will tap into the sukuk market again,” he said.
Earlier this month, Sime Darby Property teamed up with SD Guthrie Bhd to develop a next-generation industrial and logistics hub within a 3,000-acre master development plan in Kuala Selangor, Selangor. The companies will set up a special-purpose vehicle, which will be jointly and equally owned, to develop 1,000 acres within Guthrie’s Jalan Acob, Bukit Kerayong and Bukit Cherakah estates.
On this note, Azmir said “there is no rush to go to market”, noting that the market is “undergoing some challenging times”.
“There are a lot of products that are being developed. Hence, we will carry out extensive work before we go to the ground and get things moving. The idea now is to really understand the market,” he said
