PETALING JAYA: UEM Sunrise Bhd’s net profit for the second quarter ended June 30, 2019 plunged 81.1% to RM40.36 million compared with RM213.79 million in the previous corresponding period, largely due to higher margins from land sales in the previous period, cushioned by partial settlement income of Aurora Melbourne Central and Conservatory projects.
Revenue for the quarter, however, jumped 74.5% to RM1 billion against RM573.35 million previously.
In the first half of the year, the property developer reported a net profit of RM70.46 million, a 70.5% drop from RM230.08 million in the same period a year ago. Revenue came in at RM1.42 billion, a 64.9% increase from RM861.09 million achieved previously.
UEM Sunrise managing director cum CEO Anwar Syahrin Abdul Ajib highlighted that the group’s revenue for the period was largely from its projects in Melbourne, Australia.
“The successful completion of Aurora Melbourne Central with a total GDV (gross development value) of A$750 million (RM2.12 billion), as well as the positive settlement of its separable portion 3 and 4, which today stands at 99%, is evidence that the decision to venture into Australia, our maiden international foray, was one of the company’s best decisions.”
In addition, he noted that the group’s participation in the Home Ownership Campaign 2019 has been positive.
“We hope to secure more sales as the campaign has been extended towards year end. Our inventory monetisation efforts are also on track considering that 35% of our sales for the period was from completed properties.”
To-date, the group has launched properties with a total GDV of RM249.3 million.
UEM Sunrise said it will be acquiring the retail assets and a theme park building owned by Themed Attractions Resorts & Hotels Sdn Bhd in Puteri Harbour, Johor.
The deal, which is expected to be completed in the last quarter of the year, will see the group reducing its exposure in Desaru by developing 228 acres of residential lands as opposed to the original 680 acres.
The group added that it is on track to meet both its sales and gross development value targets of RM1.2 billion each for 2019, barring unforeseen adverse market conditions.
