ARA DAMANSARA: Sime Darby Property Berhad delivered its strongest nine-month performance to date for the period ended Sept 30, 2024 (9M FY2024).
The Group reported a 35% increase in revenue to RM3.3 billion, while operating profit grew 51% to RM729.5 million. Profit before tax (PBT) increased by 45% to RM636.8 million, and profit after tax and minority interest (PATAMI) grew by 50% to RM413.8 million.
The Group’s robust financial performance was driven by strong sales momentum across a diverse product mix, increased site progress within the Property Development (PD) segment, and growing revenue contribution from the Investment & Asset Management (IAM) and Leisure segments. Sales for the period rose to RM3.2 billion, representing a 25% increase year-on-year (YoY), achieving 91% of the FY2024 sales target of RM3.5 billion. This milestone also marks the highest nine-month sales performance in the Group’s history.
Sime Darby Property Group managing director, Datuk Seri Azmir Merican, said, “Our robust 9M FY2024 results demonstrate growth driven in large part by the Property Development segment. The strategic diversity of our product mix, combined with strong contributions from our key townships and maintaining a healthy gross profit (GP) margin of 33% has been critical to this performance.”
The PD segment achieved its highest nine-month revenue, surpassing RM3 billion for the first time and reaching RM3.1 billion, a 36% increase YoY from RM2.3 billion. The segment’s PBT increased by 64% to RM695.4 million, primarily driven by strong sales and financial progress across major townships such as Bandar Bukit Raja, Serenia City, Kuala Lumpur Golf &
Country Club (KLGCC) Resort, Nilai Impian, and Elmina Business Park. Additionally, non-core land monetisation activities further strengthened the segment’s performance for the financial period.
The IAM segment posted a strong 22% YoY increase in revenue, reaching RM95.8 million.
The retail sub-segment registered positive growth, with KL East Mall notably achieving an increase in occupancy rates to 98.1% in 9M FY2024, up from 89.2% in 9M FY2023.
Additionally, the newly opened Elmina Lakeside Mall also began contributing to revenue, enhancing the segment’s prospects. While the segment’s improvements are evident, it continues to face challenges, with a net fair value loss on investment properties and a higher share of losses from joint ventures.
In 9M FY2024, the Group launched products totalling RM2.9 billion in Gross Development Value (GDV), achieving 75% of the full-year target of RM3.9 billion. Industrial products accounted for 47% of the launches, followed by residential high-rise at 27% and residential landed at 19%. With a strong average take-up rate of 76% as of 31 October 2024, key residential projects included Elmina Green 7, Hype Residences at SJ7 — a Transit-Oriented
Development (TOD) — and The Ophera at KLGCC Resort, alongside developments in other townships.
The Group achieved RM3.2 billion in total sales, a 25% increase compared to 9M FY2023, achieving 91% of its FY2024 sales target. The industrial segment was the top contributor at 32%, which translates to approximately RM1 billion in value. The residential high-rise followed closely, contributing 30% of total sales, while the residential landed segment accounted for 20%. The commercial segment contributed 14%, approximately RM431.1 million in sales, marking the highest contribution to date for this category.
As of Sept 30, 2024, unsold GDV for completed inventories remains low at RM221.6 million, while cash balances recorded an increase to RM790.7 million. Sime Darby Property’s solid financial position is further underscored by an improved net gearing ratio of 19.5%, a reduction from 22.3% in 1H FY2024 and the lowest since 2018, demonstrating that the Group is well-capitalised for growth.
The City of Elmina welcomed two new major developments that underscore its growth as a vibrant urban hub. Elmina Lakeside Mall, the Group’s second wholly owned mall, opened on
Aug 22, 2024 with a biophilic design that merges nature with modern retail, achieving a 98% occupancy rate and drawing 180,000 visitors in its first week. Adjacent to the mall, the first
high-rise serviced apartments in Elmina City Centre, Kanopi Residences is set to launch in fourth quarter 2024.
Looking forward, Sime Darby Property anticipates a promising outlook for the property sector, supported by positive economic indicators. The Group is on track to achieve its FY2024 sales
target, supported by RM3.7 billion in unbilled sales and strong cash reserves.
Azmir said, “Our continued focus on diversifying our product mix and expanding recurring income streams, in line with our SHIFT25 strategy, positions us for future growth. As we move towards the close of 2024 and into 2025, we remain committed to
multiplying value for People, Businesses, Economies, and the Planet.”
