Share
PETALING JAYA (July 30): Kerjaya Prospek Property Bhd (KPPROP) has outlined a serviced apartment development pipeline with an estimated gross development value (GDV) of about RM2 billion over the next one to two years, backed by a 60-acre strategic landbank with an estimated GDV of RM3.8 billion, according to its FY2026 annual report filed with Bursa Malaysia.
In its Bursa filing on Wednesday (July 29), the property developer said the planned serviced apartment launches will be located across Kuala Lumpur, Selangor and Penang as part of its strategy to sustain long-term growth through disciplined project execution and selective expansion. Its approximately 60-acre landbank across the Klang Valley, Penang and Melaka provides a platform for future residential and mixed-use developments.
Subsequent to the financial year end, KPPROP completed the acquisition of the remaining 30% equity interest in Kerjaya Property Aspen Sdn Bhd for RM14.6 million on June 22, 2026, giving it full ownership of a 5.1-acre freehold site in Batu Kawan, Penang. The annual report said the move will allow the group to streamline project execution, optimise development planning and capture the full earnings potential of a planned mixed-use development on the site.
Recurring income portfolio expands
The expansion comes as KPPROP continues to diversify beyond residential development through a growing portfolio of recurring income assets, including Courtyard by Marriott Kuala Lumpur South, Swiss-Garden Hotel Melaka, Bloomsvale Shopping Gallery and Bloomsvale Office Tower. According to the Management Discussion and Analysis (MD&A), these hospitality and retail assets helped cushion weaker development revenue during FY2026 by providing a more stable earnings base as occupancy and utilisation improved.
During the year, the group also added to its Klang Valley pipeline with the launches of Viera 15 in Shah Alam and Senna Heights in Damansara Damai, both high-rise serviced apartment projects carrying a combined GDV of around RM870 million and designed to broaden its residential offering in key growth corridors.
FY2026 earnings supported by hospitality and retail
For the financial year ended March 31, 2026 (FY2026), group revenue slipped 6% to RM184.7 million as development contributions moderated following the completion of Bloomsvale Residence and modest progressive recognition from ongoing projects such as VOX Residence and Viera 15, according to the annual report. However, profit after tax rose 54.6% to RM11.3 million, supported by stronger hospitality and retail leasing earnings and improved margins, as gross profit increased 26.8% to RM83.2 million and gross margin expanded to 45.1% from 33.4%.
According to the MD&A, FY2026 revenue comprised RM65.8 million from property development, RM91.2 million from hospitality and RM21.3 million from retail and leasing, with the latter two segments recording double-digit growth as hotel occupancy improved and leasing activity at Bloomsvale Shopping Gallery and Bloomsvale Office Tower picked up. Management said the increasing contribution from recurring income businesses reduces the group's dependence on property development cycles and strengthens its earnings resilience.
Balance sheet strengthened by fundraising
The annual report also highlighted a stronger balance sheet, with total assets rising to RM1.33 billion and equity attributable to owners of the company increasing to RM552.4 million as at March 31, 2026. Cash and cash equivalents jumped to RM196.3 million from RM56.2 million, supported by operating cash flows and proceeds from the rights issue of ordinary shares and Redeemable Convertible Unsecured Loan Stocks, which KPPROP said provide greater financial flexibility to fund its development pipeline and strategic investments.
Focus remains on disciplined growth
With a stronger balance sheet, an expanding recurring income portfolio and a serviced apartment pipeline with an estimated GDV of about RM2 billion backed by a landbank with potential GDV of RM3.8 billion, KPPROP said it will continue replenishing its landbank selectively while focusing on disciplined execution and sustainable long-term growth.
..........
Read about emerging trends, data-backed insights, growing subsectors, and expert commentaries in EdgeProp print. Subscribe now for your free copy!
