KUALA LUMPUR: Sime Darby Property Bhd
’s RM3.8bil in unbilled sales will provide the group with earnings and cash flow visibility beyond the next three years.
The property developer, which recorded RM1.8bil in sales in the first half ended June 30, 2026 (1H26), said demand across its developments and townships remained consistent, led by industrial properties.
Industrial products contributed RM861mil, or 49% of total sales, followed by residential landed properties at RM433.1mil, residential high-rise at RM315mil and commercial products at RM128.6mil.
“As at Aug 9, bookings stood at RM1bil, providing continued momentum for sales conversion in the second half,” Sime Darby Property said in a statement.
Group managing director and chief executive officer Datuk Seri Azmir Merican said the group’s first-half performance reflected “the resilience of our diversified portfolio and strength of our integrated business model.”
“Industrial developments continue to drive growth, while our expanding investment and asset management segment and recurring-income portfolio reinforce the foundations of our SHIFT32 strategy,” he said.
For 1H26, Sime Darby Property’s net profit surged 83.6% to RM480.8mil from RM261.9mil a year ago, while revenue rose 1.3% to RM1.96bil from RM1.93bil.
In the second quarter (2Q26), its net profit more than doubled to RM322.04mil from RM143.54mil a year earlier, while revenue increased 9.2% to RM1.16bil from RM1.06bil.
The stronger performance was driven by sustained demand in its property development segment and continued growth in its investment and asset management (IAM) business.
The property development segment recorded RM1.8bil in revenue and a 24% year-on-year increase in profit before tax (PBT) to RM457.3mil, driven by stronger industrial and high-rise construction progress.
The segment also recorded RM120.4mil in fair value gains, mainly from the build-to-lease data centre in Elmina Business Park and The Cubiz Collection semi-detached factories in the City of Elmina.
Meanwhile, the IAM segment recorded revenue of RM137.8mil and PBT of RM179.2mil, driven by data centre lease income, retail portfolio performance, industrial asset contributions and improved share of results from joint ventures.
Looking ahead, Sime Darby Property has a planned launch pipeline of about RM4.7bil in gross development value across domestic and international markets for FY26.
“Demand across our core townships and industrial developments remain robust, supported by a healthy launch pipeline, strong unbilled sales, and a growing recurring-income portfolio,” Azmir said.
The group also announced its dividend policy to distribute between 40% and 60% of its profit after tax and minority interest (PATAMI), excluding extraordinary items, compared with its previous payout framework of 20%.
It declared a dividend of 1.7 sen per share for 2Q26, up 13% year-on-year, with a total payout of RM115.6mil.
Azmir said the new dividend policy reflected the group’s confidence in its ability to generate sustainable earnings and operating cash flows, “particularly as recurring income becomes a larger contributor to overall profitability under SHIFT32.”
