PETALING JAYA: Sime Darby Property Bhd
(SDP) expects to sustain its growth momentum into the financial year ending Dec 2026 (FY26), underpinned by resilient domestic demand, a supportive interest rate environment and continued expansion of its recurring income base.
The group has set a sales target of RM4bil and planned launches worth RM4.7bil in gross development value (GDV), as it positions itself to capture demand across residential, industrial and commercial segments.
Group managing director and chief executive Datuk Seri Azmir Merican said the company remains focused on disciplined execution and long-term value creation.
“We remain committed to advancing our transformation into a real estate company, while maintaining a clear focus on disciplined execution, portfolio diversification and the expansion of recurring income streams,” he said.
For the fourth quarter ended Dec 31, 2025 (4Q25), SDP reported net profit of RM87.6mil, stable when compared to the RM88.4mil garnered in the corresponding quarter a year ago.
Revenue rose 6.2% year-on-year (y-o-y) to RM1.04bil from RM977mil previously.
In its bourse statement yesterday, SDP said the performance for 4Q25 was supported by higher gross profit and other gains, which helped offset increased administrative expenses and a higher share of losses from joint ventures.
The property development segment continued to anchor performance, driven by ongoing construction progress across established townships.
Meanwhile, the investment and asset management segment benefited from stronger retail contributions and income from newly acquired industrial assets, while the leisure business recorded stable activity levels.
On a full-year basis, SDP delivered its strongest performance to date, as bottomline rose 3.1% y-o-y to RM517.1mil from RM502.2mil in FY24, despite turnover easing slightly by 1.6% to RM4.18bil.
The slip in revenue was mainly due to a 2.9% decline in property development revenue to RM3.89bil. Segment profit for property development fell 3.8% to RM783.9mil, reflecting a shift in product mix with lower contributions from industrial and residential landed developments, as well as reduced non-core land sales.
Nevertheless, development activities remained resilient, supported by launches and project progress in Bandar Bukit Raja, City of Elmina, Serenia City, Kuala Lumpur Golf & Country Club Resort and Nilai Impian.
The group said the improvement in FY25 net profit was driven by stronger contributions from the investment and asset management segment, supported by retail performance from its three wholly owned malls and contributions from the newly acquired industrial assets in Bandar Bukit Raja.
The result was further enhanced with lower losses from joint ventures and leisure segments.
The investment and asset management segment recorded revenue growth of 32.2% to RM183.9mil from RM139.2mil in FY24, driven by improved retail performance at KL East Mall, Elmina Lakeside Mall and KLGCC Mall, alongside contributions from newly acquired industrial assets.
The segment’s loss narrowed significantly to RM4.9mil from RM65.1mil previously, aided by fair value gains on investment properties and lower joint venture losses.
The leisure segment also improved, with revenue rising 5.5% to RM105.5mil and losses reduced to RM11.8mil from RM29.8mil in FY24, supported by stronger banqueting, food and beverage and membership activities.
Azmir said the results reflected consistent delivery of the group’s strategy. “Surpassing the RM4bil sales mark for the second consecutive year and achieving our highest recorded profit before tax reflects the successful execution of our SHIFT25 strategy,” he said.
“Over the past few years, we have strengthened our core development engine and expanded recurring income. These initiatives have given us the agility to navigate market shifts while enhancing our edge to deliver value for our stakeholders.”
Compared with 3Q25, however, 4Q25 performance moderated. Revenue declined 14.4% from RM1.21bil in 3Q25, while net profit fell 48% from RM168.2mil.
The sequential decline was largely attributed to lower contributions from the property development segment due to timing of launches and reduced progress billings from industrial and residential landed projects.
The investment and asset management segment also recorded higher losses quarter-on-quarter (q-o-q), mainly due to a higher share of losses from joint ventures, despite stronger retail contributions following the opening of KLGCC Mall.
Despite the softer q-o-q performance, SDP closed FY25 with record sales of RM4.2bil, exceeding its RM3.6bil target. Azmir said the group’s diversified portfolio and growing recurring income base would continue to underpin its performance.
“With a robust pipeline of industrial and residential projects and a strategic landbank, we are confident in our ability to maintain our leadership position and deliver consistent value to our shareholders,” he said.
