PETALING JAYA: Sime Darby Property Bhd’s net profit for the third quarter ended Sept 30, 2019 fell 12.4% to RM25.24 million from RM28.8 million, impacted by additional provision for disposal obligations in relation to a property disposed of in 2017.
Its revenue, however, surged 77% to RM850.03 million against RM480.34 million.
For the nine-month period, its net profit jumped fourfold to RM495.58 million from RM109.04 million, boosted by higher contribution from property development segment and one-off gains derived from disposal of properties in Singapore amounting to RM208.8 million.
Its revenue soared 38.2% to RM2.29 billion versus RM1.66 billion a year ago.
During the period under review, Sime Darby Property launched a total of 2,320 units with a combined gross development value of RM1.4 billion.
“The government’s Home Ownership Campaign, which was extended until end of the year, played a significant role in supporting the industry. A series of successful marketing campaigns have yielded positive sales of new launches, ongoing projects and completed inventories amounting to RM2.3 billion.”
As at Sept 30, 2019, its total unbilled sales stood at RM1.6 billion.
“The group remains steadfast in our commitment to grow the core business segments and reduce inventories. Our group’s focus remains on affordable properties priced below RM500,000 and mid-range products priced between RM500,000 to RM800,000 per unit where demand remains strong,“ Sime Darby Property said.
The group is also on track to expand into the growing industrial and logistics development segment. This includes build-to-suit, lease assets and managed industrial parks in City of Elmina and Bandar Bukit Raja.
Its results for the financial year ending Dec 31, 2019 are expected to be satisfactory, barring unforeseen circumstances.
