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- Performance driven by strong product mix, improved margins and higher unbilled sales
PETALING JAYA (May 28): Sime Darby Property Bhd recorded first quarter ended March 31, 2025 (Q1FY2025) revenue of RM871.6 million, operating profit of RM189.1 million, and profit before tax (PBT) and profit after tax and minority interest of RM179.6 million and RM118.4 million respectively.
The group recorded margin improvements in gross profit at 32.5% (+1.5% YoY), exceeding its guidance range of 20%–25%, supported by disciplined cost management and contributions from a well-balanced product mix, with higher margin contributions from industrial, residential landed, and commercial products.
PBT remained stable at RM179.6 million, while PBT margin improved to 20.6% (+2.1% YoY), primarily driven by stronger contributions from the Investment & Asset Management segment, which recorded a 61% YoY growth in PBT, led by the retail sub-segment.
“The group’s results were supported by sustained sales momentum, a diversified product mix, and continued focus on cost discipline,” stated Sime Darby Property in a media release on the results.
Sime Darby Property launched a total GDV of RM656.5 million in 1QFY2025, comprising 38% residential landed (RM252.1 million), 32% industrial (RM209.5 million), and 30% commercial (RM194.9 million).
Notable launches during the quarter included The Nine in Elmina West, a residential landed development spanning across 192 units of double-storey linked homes with a GDV of RM167 million; and Quadria in Bandar Bukit Raja, the township’s first four-storey semi-detached offices, with a GDV of RM194.9 million.
Sime Darby Property recorded RM927.5 million in sales for 1QFY2025, achieving 26% of its full-year target of RM3.6 billion.
Sales were led by industrial products, contributing RM461.5 million (50%), followed by residential high-rise at RM246.3 million (27%), residential landed at RM127.9 million (14%), and commercial offerings at RM65.3 million (7%).
New launches accounted for 61% (RM564.6 million) of total sales, driven primarily by industrial products from Elmina Business Park and Serenia Industrial Park, and supported by residential high-rise developments such as The Reya in Taman Melawati, Ophera in KLGCC Resort, and Kanopi Residences in the City of Elmina.
Overall bookings as of May 18, 2025 stood at RM1.6 billion.
Sime Darby Property’s unbilled sales increased to its highest level since 2017 at RM3.8 billion, securing clear earnings visibility for the next three years. Unsold GDV for completed inventories low at RM227.2 million, while cash balances remained healthy at RM714.4 million.
The group’s net gearing ratio of 27.9% as at March 31, 2025 remains well-capitalised for growth. In April 2025, its RM800 million sukuk issuance as part of its RM4.5 billion programme was oversubscribed by 6.7x with tightest credit spreads achieved despite prevailing market uncertainties.
The sukuk proceeds from the issuance will be utilised to fund the group’s long-term growth initiatives, including the build-up of its recurring income portfolio and Assets Under Management, to maximise shareholder value as part of its evolution towards a real estate company as well as working capital requirement and other general corporate purposes.
“FY2025 is off to a solid start, building on our record performance last year. This quarter’s results were anchored by margin improvement, firm sales momentum, and rising contributions from our investment & asset management segment,” said Sime Darby Property’s group managing director & chief executive officer, Datuk Seri Azmir Merican.
Sime Darby Property also unveiled Vision Business Park as its latest industrial development in Malaysian Vision Valley 2.0, Negeri Sembilan, building on the success of Hamilton Nilai City which has been operational since 2021.
Spanning 760 acres with a projected GDV of RM2.4 billion, the strategic industrial hub is set to be a key growth catalyst for the region, with the potential to generate up to 15,000 job opportunities.
“As we enter the final year of our SHIFT25 strategy, our focus sharpens on executing with discipline, unlocking value across our portfolio, and strengthening recurring income to deliver sustainable growth,” added Azmir.
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