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PETALING JAYA (May 20): UEM Sunrise Bhd maintained profitability in the first quarter ended March 31, 2026, posting a profit before tax (PBT) of RM22.49 million and revenue of RM347.71 million, as its property development segment recorded a strong 24% revenue increase driven by improved sales and construction progress from key Central region projects.
In its Bursa filing, net profit for the period came in at RM15.45 million, of which RM16.20 million was attributable to owners of the parent, against RM19.44 million and RM20.49 million respectively, in the corresponding quarter of 2025.
Revenue declined 16.7% year-on-year from RM417.63 million, primarily due to lower land sales, which fell by RM131 million as the year-ago quarter benefited from the divestment of non-strategic land in Iskandar Puteri, Johor.
Property development revenue, however, increased by 24%, driven by improved sales and construction progress from the MINH and Connaught One projects in the Central region, partially offset by lower contributions from Intrika.
The Southern region recorded higher contributions from DiReka Square, moderated by lower contributions from Senadi Hills.
On a quarter-on-quarter basis, revenue decreased 18% from RM424.28 million in 4Q2025, mainly due to the deferment of key land sales pending fulfilment of conditions precedent, while property development revenue remained steady.
Operating profit improved to RM39.69 million in 1Q2026 from an operating loss of RM14.65 million in 4Q2025, attributable to the absence of non-operational and non-cash adjustments as well as improved cost management.
Share of net results from joint ventures and associates contributed RM15.72 million, down from RM57.07 million in 1Q2025 and RM51.17 million in 4Q2025.
The board declared a single-tier tax exempt dividend of 0.84 sen per share and a special single-tier tax exempt dividend of 0.59 sen per share for FY2025, amounting to approximately RM73 million, paid on May 15, 2026. No interim dividend was declared for 1Q2026.
Total borrowings stood at RM3.93 billion as at March 31, 2026, comprising RM2.92 billion in long-term borrowings — primarily RM2.87 billion in Islamic Medium Term Notes (IMTN) — and RM1.01 billion in short-term borrowings.
The group issued RM500 million of 12-year IMTN at 4.10% per annum in February 2026, while repaying RM590 million of IMTN during the quarter. Cash, bank balances and deposits stood at RM955.06 million.
Net assets per share attributable to owners stood at RM1.35 as at March 31, 2026, against RM1.36 at end-2025. Basic earnings per share for the quarter was 0.32 sen, against 0.40 sen in 1Q2025.
On litigation, the group disclosed two material tax-related cases. Bandar Nusajaya Development Sdn Bhd's appeal against an additional tax assessment of RM73.8 million is scheduled for hearing at the High Court on June 2, 2026, while Symphony Hills Sdn Bhd's stay application hearing on an additional assessment of RM73.7 million is fixed for August 3, 2026, with a Special Commissioners of Income Tax trial scheduled for Oct 26 and 27, 2026.
Looking ahead, UEM Sunrise said it remains well-positioned to capture opportunities amid supportive macroeconomic fundamentals, citing Bank Negara Malaysia's unchanged overnight policy rate of 2.75% and Malaysia's 5.4% GDP growth in 1Q2026.
The group acknowledged upward pressure on construction costs from higher global commodity prices due to the US-Iran conflict, but noted that Rehda has described Malaysia's real estate outlook for 2026 as "cautiously optimistic."
For FY2026, UEM Sunrise maintained its sales target of RM1.3 billion and launched gross development value target of RM2.2 billion, focused on Serene Heights and Mont'Kiara in the Central region, and Gerbang Nusajaya and Estuari in the Southern region, alongside One Oval in Perth and an upcoming built-to-rent development in Collingwood, Melbourne.
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