PETALING JAYA: After posting a record-breaking financial performance for the financial year ended Dec 31, 2025 (FY25), Sime Darby Property Bhd
(SimeProp) sees external factors as challenges weighing on consumer sentiment and putting pressure on performance goals for FY26.
However, the company remains optimistic of sustaining the momentum for now but will also be keeping an eye on costs in FY26.
Its group managing director and chief executive officer Datuk Seri Azmir Merican said a strong ringgit could help in keeping costs down.
“Cost pressures may continue in 2026 – for example the rising cost of imported materials, which fluctuates.
“We are still cautious here as there were cost increases that happened in 2025 – labour issues, expanded sales and services tax, new electricity tariff and price volatility. We have to manage this well in order for us to protect our margins,” Azmir said last Friday at its FY25 briefing.
The company achieved a record pre-tax profit of RM803.4mil with record sales of RM4.2bil in its FY25.
Its historical high sales performance last year surpassed an initial target of RM3.6bil by 17%.
Meanwhile, Azmir said the company continues to maintain its sales target for strata high-rise products at RM1.2bil for 2026.
“If you look at the oversupply condition, the largest segment, which is a bit problematic, is the lower-end segment which is RM300,000 and below – this is largely unsold. If you look at our performance, our take up rates might be slightly lower because of timing.
“But the landed residential segment generally has reasonable to good take-up rates,” Azmir said.
He noted that it is too soon to discuss breakeven expectations for the newly opened KLGCC mall, as the mall is now only undergoing its first lease cycle.
“It’s less than four months in operation – and it’s a bit too soon to talk about this.
“We have to focus on building a quality product for KLGCC Mall and we certainly have a breakeven timeline.”
