Sime Darby Property Delivers All-Time High 9M Revenue and Profit
Strong Nine-Month Performance
Sime Darby Property Berhad has 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.
Key Drivers of Growth
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.
Property Development Segment
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.
Investment & Asset Management Segment
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.
Leisure Segment
The Leisure segment reported a 10% YoY increase in revenue, driven by the strong performance of KLGCC Resort and other leisure assets.
Launches and Sales
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.
Financial Position
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.
Outlook
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.
Conclusion
Sime Darby Property’s robust 9M FY2024 results demonstrate growth driven in large part by the Property Development segment. The Group’s strategic diversity of product mix, combined with strong contributions from its key townships and maintaining a healthy gross profit (GP) margin of 33% has been critical to this performance.
FAQs
Q: What was Sime Darby Property’s revenue for 9M FY2024?
A: The Group reported a 35% increase in revenue to RM3.3 billion.
Q: What was the growth in operating profit for 9M FY2024?
A: Operating profit grew 51% to RM729.5 million.
Q: What was the growth in profit before tax (PBT) for 9M FY2024?
A: PBT increased by 45% to RM636.8 million.
Q: What was the growth in profit after tax and minority interest (PATAMI) for 9M FY2024?
A: PATAMI grew by 50% to RM413.8 million.
Q: What was the key driver of growth for Sime Darby Property’s 9M FY2024 results?
A: Strong sales momentum across a diverse product mix, increased site progress within the Property Development segment, and growing revenue contribution from the Investment & Asset Management and Leisure segments.