PETALING JAYA: Sime Darby Property Bhd posted a revenue of RM1.5bil for the nine months ended Sept 30 (9M FY2021), registering a 9.1% increase from RM1.4bil achieved in the same period last year.
In 9M FY2021, the Group’s profit before tax (PBT) was RM147.4mil, marking a turnaround compared to the FY2020 corresponding period’s loss before tax (LBT) of RM445.5mil. Profit after tax and minority interest stood at RM64.7mil.
Sime Darby Property’s group managing director, Datuk Azmir Merican said that the Group is optimistic of exceeding the RM2.4bil sales target for FY2021, backed by the sales achieved in the first nine months of the year, with secured bookings of RM1.7bil as of Nov 7.
“We have delivered healthy sales for the Group to-date and will continue to launch projects at the right location and price points,” Azmir said.
Sime Darby Property group managing director, Datuk Azmir Merican said that the Group is optimistic of exceeding the RM2.4bil sales target for FY2021, backed by the sales achieved in the first nine months of the year, with secured bookings of RM1.7bil as of Nov 7.
“The Group aims to keep up the momentum of 90% average take-up rate in new residential launches for the remainder of the year,” he shared.
9M FY2021 year-to-date by segment
The property development segment contributed 92.8% or RM1.4bil to the Group’s total revenue, which is a 15.3% increase from last year’s RM1.3bil. The segment recorded an improved PBT of RM187.4mil from last year’s LBT of RM433.7mil.
This was achieved via higher sales of industrial and residential products, coupled with construction progress across all its major townships in the Klang Valley and Negeri Sembilan.
For the 9M FY2021, the investment and asset management segment contributed RM71.4mil in revenue, which is a 28.1% year-on-year increase, and an increase in PBT of RM11.8mil from RM2.3mil last year. The higher revenue is mainly contributed by the Group’s wholly-owned KL East Mall.
The leisure segment posted a revenue of RM41.2mil and LBT of RM15.6mil respectively. This segment was impacted by Movement Control Orders (MCO), with losses managed through the consolidation of operations.
Q3 FY2021 vs Q3 FY2020
Sime Darby Property’s revenue of RM388.2mil in Q3 FY2021 represented a 34.5% decline year-on-year, due to temporary shutdown of project sites and sales galleries.
LBT reduced by 98.5% to RM4.8mil as last year’s quarter was impacted by impairments and provisions.
Q3 FY2021 vs Q2 FY2021
Revenue declined by 22.8% quarter-on-quarter, and the Group registered an LBT versus the preceding quarter’s PBT of RM57.3mil.
The property development segment’s revenue reduced to RM356mil and PBT declined to RM10.1mil. The adverse impact was partially cushioned by cost containment and continued online sales.
Product clearance in KLGCC Resort and KL East in Melawati have resulted in completed stock balances standing at a healthy low of RM403.4mil.
Investment and asset management as well as leisure segments registered drops in revenue to RM22.7mil and RM12.3mil, with LBT of RM0.7mil and RM9.3mil for each segment.
Financial and operational achievements
Sime Darby Property’s financial position remains solid with cash balances of RM618.9mil and a moderate net gearing ratio of 32.1% as of Sept 30.
The Group has higher revenue visibility over a longer period, underpinned by unbilled sales of RM2.1bil to-date.
Unbilled sales surpassed the RM2.0bil mark for the first time since 2018 and is expected to increase further.
The sales achievement is led by residential landed products, contributing to 47.4% of the total sales achieved, followed by residential high-rise at 23.1% and industrial products at 15.7%.
The Group’s new launches of residential products this year have garnered an average take-up rate of 90%. Serenia Ariya landed projects have enjoyed 100% take-ups, with Dayana and Elmina Green Four A and B at 98%, followed by Lyra 1, 2 and 3 at 97%.
As for high-rise, Maya Ara Residences in Ara Damansara and Jendela Residences in KLGCC Resort, achieved take-up rates of 90% and close to 70% respectively.
Average take-up rate for industrial products was also healthy with the second launch of semi-detached twin factories at Elmina Business Park registering a 100% take-up.
Prospects for the remainder of FY2021
Sime Darby Property’s prospects for the remainder of the year is more robust following a challenging third quarter.
The Group is currently rolling out its remaining planned launches worth RM1.6bil with a healthy mix of products including 57.8% of residential landed, 25.8% of industrial products and 13.9% of residential high-rise.
The expected worth of total launches for FY2021 is RM3.9bil.
Azmir said, “As the economy and property market regain momentum, our strategies will continue to enable us to generate positive financial and operational results for the full financial year.”
“We are focused on achieving our corporate priorities for FY2021 which includes broadening Sime Darby Property’s recurring income over the long term, as seen by our recent venture into industrial development funds.
“We are tapping on the demand of large-scale, modern logistics properties in prime locations and the new partnership with LOGOS Property Group is a significant step for the Group’s long-term game plan in the real estate sector,” he added.