PETALING JAYA: Sime Darby Property Bhd
’s (SimeProp) outlook remains solid despite ongoing geopolitical uncertainty, supported by innovative funding platforms, a growing pool of investment assets, and a diversified product portfolio.
“All these are expected to drive long-term growth while mitigating earnings volatility, especially amid rising cost pressures,” RHB Research said.
The research house said SimeProp may set up new development funds to undertake more institutional-grade projects such as commercial properties, student accommodation, and data centres (DCs), as it seeks to pursue long-term growth without over-leveraging its balance sheet.
The firm expects to benefit from land disposal gains upon injecting projects into the fund. “Upon maturity of the fund, SimeProp will be able to reap more sizeable profit from the projects,” RHB Research said.
The company’s first core-and-shell DC has been completed, with leasing income expected to kick in from the second quarter of financial year 2026.
“This would mark the start of a 20-year lease worth RM2bil,” RHB Research added.
RHB Research maintained its “buy” call on the stock, with SimeProp remaining its top sector pick.
However, it trimmed its target price from RM2.33 to RM2.15 and revised its earnings estimates for financial years 2026, 2027, and 2028 by 5%, 2%, and 1%, respectively, to reflect the impact of the Iran war.
