Sime Darby Property readies for 53rd AGM as industrial and tech-linked recurring income grows

PETALING JAYA (June 9): Sime Darby Property Bhd is heading into its 53rd annual general meeting (AGM) with a growing pipeline of industrial and technology infrastructure assets at Elmina Business Park, Selangor and an increasing contribution from its investment and asset management (IAM) segment, as disclosed in its 2025 Integrated Annual Report and regulatory filings.

When shareholders gather at the Grand Ballroom of the KLGCC Convention Centre in Kuala Lumpur and via remote participation tomorrow (June 10), they will consider the group’s FY2025 financial performance, capital management, and the resolutions set out in the AGM notice dated April 20. 

Hyperscale data centre agreements at Elmina Business Park

According to Sime Darby Property’s announcements and annual report, the group has entered into two “build and lease” agreements at Elmina Business Park with Pearl Computing Malaysia Sdn Bhd, a wholly-owned subsidiary of Singapore-based Raiden APAC Pte Ltd, in respect of hyperscale data centre developments. 

The first agreement, announced in May 2024, covers a data centre development on a 49‑acre site, for which Gamuda Engineering Sdn Bhd was awarded construction contracts worth RM1.74 billion. A second agreement, signed in December 2024, relates to an adjacent 77‑acre site and carries an estimated lease value of up to RM5.6 billion over a 20‑year tenure, based on company disclosures.

Sime Darby Property has indicated in its disclosures that the two Elmina Business Park agreements collectively represent a potential recurring lease income pipeline of up to RM7.6 billion over their respective terms. 

The group has further indicated, based on its disclosures, that once fully completed and stabilised, these assets are expected to contribute approximately RM380 million in annualised recurring income. 

The group’s IAM segment, which houses investment properties and recurring income operations, reported revenue of RM183.9 million in FY2025, a 32.1% increase year‑on‑year, and profit before tax of RM48.1 million, compared with a RM11.4 million loss before tax in FY2024.

As outlined in its SHIFT25 and SHIFT32 strategies in the Integrated Annual Report, Sime Darby Property has stated its long‑term aspiration for recurring income to contribute around 30% of total group earnings, supported by industrial, logistics and investment properties.

Review of FY2025 performance and portfolio mix

For the financial year ended Dec 31, 2025 (FY2025), Sime Darby Property reported revenue of RM4,184.2 million and profit before tax of RM803.4 million, while profit after tax and minority interests (PATAMI) increased by 3.1% to RM517.7 million. 

The group achieved total sales of RM4.2 billion, exceeding its internal annual target of RM3.6 billion by approximately 17%, with unbilled sales of RM3.9 billion providing earnings visibility over the next three financial years.

Gross profit margin for FY2025 came in at 33.3%, above the initial guidance range of 20% to 25% provided at the start of the year. 

Industrial products accounted for 37% of total launched gross development value (GDV), or RM1.3 billion out of RM3.6 billion in total launches, and contributed 36% of total sales, compared with landed residential products, according to the group’s segmental disclosures.

During the year, the group also launched KLGCC Mall in Bukit Kiara, Kuala Lumpur, with a net lettable area (NLA) of 227,484 sq ft, and completed the RM232 million acquisition of two double‑storey logistics warehouses in Bandar Bukit Raja, Klang, Selangor. The warehouses, Metrohub 1 and Metrohub 2, have achieved 100% occupancy, while construction of Metrohub 4 is currently in progress. 

For FY2025, the board declared a final dividend of 3.2 sen per share, amounting to RM217.6 million, representing a payout ratio of 42%, based on the company’s disclosures. 

Capital structure, IMTN programme and gearing

Sime Darby Property’s total borrowings stood at RM4,524.5 million as at Dec 31, 2025, resulting in a reported net gearing ratio of 35.9%. To support its capital expenditure and development pipeline, the group continued to utilise its RM4.5 billion Islamic Medium-Term Notes (IMTN) programme. 

In FY2025, it completed its third IMTN issuance, which was oversubscribed by 6.7 times, according to the company. Malaysian Rating Corporation Bhd (MARC) has reaffirmed the IMTN programme’s AA+IS rating with a stable outlook.

In the Integrated Annual Report, the group said it intends to balance growth investments in industrial and data centre assets with its capital management framework and target gearing levels, while maintaining access to diversified funding sources.

AGM agenda: re-election of directors, fees, and auditors

The 53rd AGM notice sets out seven ordinary business items. Shareholders will receive the audited financial statements for FY2025 together with the reports of the directors and auditors, and consider the re‑election of directors retiring in accordance with Rules 111 and 92.3 of the company’s constitution. 

The directors seeking re‑election are chairman Datuk Rizal Rickman Ramli, group managing director Datuk Seri Azmir Merican Azmi Merican and Datuk Soam Heng Choon under Rule 111, and Thayaparan Sangarapillai under Rule 92.3, following his appointment to the board on April 1.

The board is also seeking shareholder approval for the payment of fees to non‑executive directors (NEDs) for the period from June 11 until the next AGM in 2027, comprising an annual fee of RM540,000 for the chairman and RM220,000 for each NED, as well as board and board committee fees as set out in the notice. 

In addition, the company is proposing approval for benefits payable to NEDs of up to RM1.5 million for the same period, consistent with the limit approved at the previous AGM.

Shareholders will further consider the re‑appointment of PricewaterhouseCoopers PLT as external auditors for the financial year ending Dec 31 and the authorisation for the directors to fix the auditors’ remuneration. 

Pursuant to the Main Market Listing Requirements of Bursa Malaysia Securities Bhd and the company’s constitution, the notice states that all resolutions at the AGM will be decided by poll.

Only depositors whose names appear in the record of depositors as at May 29 are entitled to attend, speak and vote at the AGM or appoint proxies to do so on their behalf.

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