KUALA LUMPUR, Feb 27 — Sime Darby Property Bhd fell into a net loss of RM318.70 million for six-month financial period ended Dec 31, 2018 (FY18), from a net profit of RM559.77 million recorded in 2017.
The company, which has changed its financial year end from June 30 to Dec 31, said the net loss was due to high impairment of inventories, negative contribution from the Battersea Power Station project in London and a higher tax provision during the period under review.
This was in addition to RM318.7 million gains of disposal of a subsidiary and an associate included in the previous year’s results.
For the six-month period, the group’s share of loss from the 40 per cent-owned Battersea venture was RM7.7 million against a profit of RM112.1 million recorded in the previous year.
Despite slipping into the red, Sime Darby Property saw an increase of 7.9 per cent in revenue to RM1.27 billion during the period under review from RM1.18 billion a year earlier, thanks to the improved performance of its property development and concession arrangement segments.
It posted a loss per share of 4.70 sen against earnings per share of 11.90 sen previously.
Meanwhile, in a press statement, the company said it surpassed its sales target of RM1 billion for the six-month period despite the market slowdown, reporting sales of RM1.34 billion.
For this financial year ending Dec 31, 2019, the group has set a target of RM2.3 billion in sales and RM2.0 billion in unbilled sales.
“Having addressed our legacy assets and products, we expect an immediate return to profitability as operationally our performance has been positive.
“Our launches during the period were well received and we expect this to continue into the first half of 2019,” said chairman Tan Sri Zeti Akhtar Aziz.
Demand for landed products in Serenia City, Selangor, continues to be strong with 99 per cent of Serenia Adiva sold in October. In July, buyers snapped up 81 per cent of Ayra, which are double-storey landed homes in Bandar Bukit Raja, Klang.
Meanwhile, group managing director Amrin Awaluddin said the prolonged softness of the property market remained a major challenge but the group was hopeful of a silver lining with concerted effort from the public and private sectors.
“We will also continuously review plans for the year to ensure that our pricing strategy and future launches are responsive to market demand,” he said.
In early 2019, the group completed the disposal of Darby Park Executive Suites, one of its hospitality assets in Singapore.
Sime Darby Property said it would actively look into more strategic partnerships as part of plans to further develop industrial and logistic properties which would serve as catalytic development for its townships, diversification beyond traditional products and increasing its recurrent income in the longer term.
It is currently partnering Japan’s Mitsui & Co and Mitsubishi Estate Co Ltd to develop a managed industrial park in Bandar Bukit Raja.
The group is also expected to begin operations of a new mall, namely Galleria, KL East, in the fourth quarter of the year. This will add to the existing investment portfolio, which will support the growth of recurring income. — Bernama
Source: The Malay Mail Online