Sime Darby Property’s 3Q earnings 12.4% lower


SIME Darby Property Bhd’s net profit for the third quarter ended Sept 30, 2019 (3Q19), decreased 12.36% year-on-year (YoY) to RM25.24 million from RM28.8 million recorded a year ago on higher share of results of joint ventures (JVs) losses and other losses.

The property developer said its share of results of JVs losses in the three months widened to RM23.29 million compared to RM4.84 million in 3Q18.

It also recorded other losses of RM27.52 million in 3Q19, against other gains of RM2.85 million in 3Q18. Sime Darby Property’s earnings per share for the quarter remained at 0.4 sen.

However, its revenues for the quarter surged 76.96% YoY to RM850.03 million from RM480.34 million in 3Q18.

For the nine months period (9M19), Sime Darby Property’s net profit increased more than fourfold to RM495.58 million from RM109.04 million in the same period last year.

The group’s property development segment registered a significant improvement in performance with 252.7% or RM214.9 million increased in 9M19, which included gain on non-strategic land sale in Bukit Selarong, Kedah and compulsory land acquisitions of RM81.1 million and RM27 million respectively, offset with provision and impairment totalling RM70 million.

In addition, the previous year’s results included gain on land sale of RM3.3 million, reversal of write-down of inventories of RM39.6 million in relation to the group’s project in Gold Coast, Australia, and other provision totalling RM15.8 million.

Excluding these one-off, the 352.2% increased in current year performance was contributed mainly by higher sales and development activities in Denai Alam, City of Elmina, Bandar Bukit Raja, Nilai Utama, Serenia City and Cantara Residences in Ara Damansara partially offset by lower contribution from Bandar Universiti Pagoh township.

The group’s share of losses from JVs and associates increased to RM35.4 million as compared to RM29.2 million in 9M18, due to higher marketing expenses incurred by Battersea and lower share of profit from PJ Midtown.

The counter closed three sen or 3.82% higher to 82 sen yesterday, with a RM5.54 billion market capitalisation.