Sime Darby Property posts RM28.7m profit

By BERNAMA / Graphic By TMR

Sime Darby Property Bhd’s third-quarter (3Q) net profit narrowed 8.1% to RM28.72 million from the RM31.25 million posted last year.

Revenue also edged down 6% to RM550.67 million for the 3Q ended March 31, 2018, compared to RM585.75 million previously, it said in a filing to Bursa Malaysia.

For the nine-month (9M) period, net profit jumped 78.2% to RM592.72 million while revenue rose 17.5% to RM1.69 billion previously.

“The higher results for the 9M ended March 31, 2018, were mainly attributable to an increase in segment (profit) result by 4.3% and other gains of RM317.8 million,” it said.

The other gains included gains on the disposal of Malaysia Land Development Co Bhd and a 40% equity stake in Seriemas Development Sdn Bhd of RM39.6 million and RM278.2 million respectively.

Sime Darby Property said in the near term, following the change in federal government, the group expects a more cautious consumer sentiment coupled with a wait-and-see stance by property investors.

“However, the strong investor confidence in the new leadership and the government’s commitment to spur sustainable and equitable economic growth augur well for the property sector, particularly its focus on affordable housing.”

This commitment bodes well for the group with its focused strategy to roll out a sustainable pipeline of affordable quality homes in Selangor, Negri Sembilan and Johor, it added.

The company also said it is on track to launch 709 property units for the remaining three months of the financial year 2018, including 337 units of mid-range landed properties in Elmina West, Sungai Buloh, with a combined estimated gross development value of about RM632 million.

In the UK, the group’s 40%- owned joint venture, Battersea Power Station Holding Co Ltd, is diligently focused on developing Phases 2 and 3, which are targeted to be completed between end-2020 and early- 2021.

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