SIME DARBY PROPERTY Q1 FY22 NET PROFIT FALLS 21 PCT TO RM51.8 MLN

KUALA LUMPUR, May 24 (Bernama) -- Sime Darby Property Bhd's net profit fell to RM51.84 million in the first quarter ended March 31, 2022 (Q1 2022) from RM66.04 million a year ago.

Revenue for the quarter under review also fell to RM480.33 million from RM588.77 million a year ago due to a decrease in contribution from property development segment but mitigated by improved financial performance from its two other core business segments, namely, investment and asset management, and leisure.

“The decrease in revenue was mainly due to lower development activities in City of Elmina, Serenia City, Bukit Jelutong and KLGCC Resort, coupled with lower sales of completed inventories in KLGCC Resort, Taman Melawati and KL East township, resulting in a lower profit contribution in the current quarter,” the developer said in a stock exchange filing today.

bootstrap slideshow

The gross development value for new launches in FY2022 remains at RM2.8 billion, of which RM383.5 million were launched in the first quarter of the year.

Residential landed launches in Q1 FY2022 achieved average take-up rate of 96%, with industrial products fully taken-up as of early May, 2022.

Nonetheless, the company said that the recent labour shortage in the country -- a focus area being monitored closely -- has limited acceleration of site progress, which in turn had affected the revenue and profit recognition in the current quarter.

The group is positive about the real estate market going forward, particularly in the residential and industrial segments, prompted by easing of restrictions in the endemic phase effective April 1, 2022 and supported by an encouraging population vaccination rate and reopening of international borders.

-- BERNAMA