Sime Darby Property achieves sales of RM3.3bil, record post-demerger revenue of RM3.44bil in FY23

KUALA LUMPUR: Sime Darby Property Bhd is looking forward to a positive 2024 with plans to hit a RM3bil sales target and launch properties worth RM3.9bil in gross development value (GDV).

"Sime Darby Property is expanding its retail and placemaking components with the Q2 opening of its second wholly-owned mall, the Elmina Lakeside Mall in the City of Elmina.

"The group is optimistic about growth opportunities in this sector to broaden recurring income streams in the long term," it said in a statement.

In the fourth quarter ended Dec 31, 2023, Sime Darby Property posted a net profit of RM131.26mil, up from RM103.15mil, which brought earnings per share to 1.9 sen against 1.5 sen.

The group's revenue rose to RM1.01bil from RM956.9mil.

The board of directors declared a second dividend of 1.5 sen, bringing total dividend to 2.5 sen for FY23.

Over the entire 12-month period, the group reported a net profit of RM407.91mil against RM315.84mil in FY22 while revenue rose to RM3.44bil - the highest recorded post-demerger- against RM2.74bil in the previous year.

In FY23, Sime Darby Property said it achieved sales of RM3.3bil, outperforming its sales target by 22%, while new launches amounted to RM4bil GDV.

It said the industrial and high-rise residential segments recorded improvements, with 15% and 2% year-on-year growth respecitvely, amounting to RM1bil and RM889bil.

The group said overall bookings stood at RM1.9bil as at Feb 4, 2024.

As at Dec 31, 2023, Sime Darby Property maintained its unbilled sales of RM3.6bil, which will provide further earnings visibility for the next three years.

Completed inventories stood at RM390.3mil in GDV, while cash balances stood at RM603mil with a strong operating cashflow, excluding land acquisition, of RM617mil.

The group recorded a net gearing ratio of 23%.

The group's Battersea Power Station in London achieved £243mil (about RM1.4bil) of residential sales in FY23, which it said was a pivotal year for the project with more than 11 million visitors welcomed since Oct 14, 2022.

"We set high targets, and are pleased to have far exceeded these expectations.

"Our results reflect our execution capability and equally important, our SHIFT25 targets continue to progress well and remain on track,” said group managing director Datuk Azmir Merican.