UEM Sunrise’s earnings rise 28% to RM27m in 3Q

Driven by projects’ development savings and higher margin from land disposal in Iskandar Puteri

By FARA AISYAH / Pic By MUHD AMIN NAHARUL

UEM Sunrise Bhd’s net profit increased 28% year-on-year (YoY) to RM27.1 million for the third quarter ended Sept 30, 2019 (3Q19), from RM21.17 million a year ago, largely on projects’ development savings and higher margin from land disposal in Iskandar Puteri, Johor.

The developer’s earnings per share for the three months in focus was higher at 0.6 sen compared to 0.47 sen in 3Q18, it said in an exchange filing yesterday.

Quarterly revenue however declined 23.8% YoY to RM327.61 million from RM430.1 million the year prior due to lower settlement of Aurora Melbourne Central and Conservatory Melbourne in Australia, and lower sales of completed units.

For the nine months ended Sept 30, 2019 (9M19), the group’s earnings fell 62.5% YoY to RM97.56 million from RM260.25 million last year, where the group recognised sales from land disposal.

9M19 revenue jumped 35.7% YoY to RM1.75 billion from RM1.29 billion in 9M18, driven by the strong settlement of the group’s Australian projects, UEM Sunrise MD and CEO Anwar Syahrin Abdul Ajib (picture) said.

“Aurora Melbourne Central, the 88-storey mixed-use development comprising 959 residential apartments, 252 serviced apartments and office suites with a total gross development value of A$750 million (RM2.13 billion) is already completed.

“We have handed over all separable portions, the latest being the A$241.2 million SP5 progressively from Sept 16, which saw a positive settlement to date of 76%. SP3 and SP4 are already at 100%,” he said in a statement yesterday.

The development’s entire loan facilities have also been paid off, Anwar Syahrin said.

An 85% settlement rate has been achieved to date for the Conservatory project, while its loan facilities are also fully settled.

Property development activities contributed 92% of the company’s total revenue for the period, of which 69% came from international projects — mainly in Melbourne, followed by 16% from the central region including Symphony Hills in Cyberjaya, Selangor, Residensi Sefina in Mont Kiara, Kuala Lumpur, and Serene Heights in Bangi, Selangor.

The remaining 15% was from the southern region largely from Serimbun, [email protected] Harbour and Aspira LakeHomes, in Iskandar Puteri.

As at end-September 2019, UEM Sunrise’s unbilled sales stood at RM2.4 billion.

Property development sales for the current period came in at RM720 million, of which 52% came from central region projects, while 45% was from the southern region.

On Nov 12, 2019, UEM Sunrise announced the divestment of the Mayfair site on St Kilda Road in Melbourne to Acme Co No 4 Pty Ltd for A$107.1 million.

“This allowed us the opportunity to unlock the value of the site at a gain and free up cash to enable the pursuit of other investments and venture prospects. Completion is expected in December 2019,” Anwar Syahrin said.