Property

KUALA LUMPUR: Kwasa Land Sdn Bhd, the master developer of Kwasa Damansara and  a wholly-owned subsidiary of the Employees Provident Fund Board (EPF), has partnered with Impiana Land and Development Sdn Bhd (Impiana) on a new residential development in the township. The project, Impiana’s second in Kwasa Damansara, will entail the construction of landed homes, as well as low and mid-rise condominium on a land area of approximately 47 acres. Coined as Serene Kwasa Damansara, the project will be spread across three plots with a gross development value (GDV) of RM1.5 billion. The project will be delivered in phases, with the first phase expected to be completed in the fourth quarter (Q4) of 2028. Formerly the site of the renowned Rubber Research Institute, the first and largest of three plots retains its heritage. Kwasa Land managing director Datuk Adenan Md Yusof said the company is pleased to partner with Impiana again on their second development within Kwasa Damansara. “It will be developed with surrounding green spaces, great connectivity to transportation networks, and also designed with the family unit in mind, meeting the lifestyle needs of Malaysians today. “Serene Kwasa Damansara will complement our efforts as the master developer, boosting the value of this township. “We look forward to offering various residential offerings with Impiana, leveraging their vast experience in high-quality development equipped with top- notch facilities,” he said in a statement. Serene Kwasa Damansara’s Serene South Lakes offers 141 neo-colonial-themed homes, including bungalows, link villas, and semi-detached homes. Perched on sloping terrains, these homes command scenic vantage views of the lake. The second phase measuring 4.6 acres, The Park, will consist of two modern tropical-themed mid-rise blocks of 311 units with facilities amid lush landscapes and refreshing greenery. The Serene Hillside is a 12-acre hillside plot comprising four blocks of low and mid-rise condominiums with 468 units surrounded by greenery. Serene Kwasa Damansara can offer vistas and vantage viewpoints to its future residents. It will be developed in a conducive, green environment, offering dedicated clubhouses, swimming pools, and landscaped gardens. Neighbouring mature neighbourhoods such as Tropicana Indah, Ara Damansara and Kota Damansara, the project is also close to future commercial centres, retail and dining offerings, and two mass rapid transit (MRT) stations connected directly to the Putrajaya and Kajang lines. Impiana managing director Datuk Haris Onn Hussein believes a home must be more than a building. “It has to be a space generous enough for life to expand and grow, enclosed in structure but open in spirit, to nurture a lifetime of cherished memories. “We are excited to be a development partner to Kwasa Land as we embark on a dynamic and future-forward residential development at Kwasa Damansara, a burgeoning location in the Damansara region – one where we see people converge to live, work and play as an attractive address and neighbourhood,” he said. Impiana’s maiden project in the township is known as Linari Damansara. Sitting on an 8.9-acre site, the development consists of two towers housing 480 units of condominiums and 16 units of Park Homes. Linari is positioned to offer a mass-transit-oriented lifestyle adjacent to the Kwasa Damansara MRT station. Once completed, it will offer residents a dedicated security entrance and pedestrian walkway to the station. Linari is planned with a host of features and facilities, including a community garden, lap and kid’s pools, jogging and cycling trail, BBQ area, gym, yoga lawn, and many more. It will be launched this year and is expected to be completed by 2027.

KUALA LUMPUR: Domestic property companies are setting higher new sales targets to express optimism about the outlook for the financial year 2024 (FY24). MIDF Research said Sunway Bhd targets to achieve new sales of RM2.6 billion in FY24 after recording new sales of RM2.4 billion in FY23. Similarly, Mah Sing Group Bhd is setting a higher new sales target of RM2.5 billion for FY24 after hitting new sales of RM2.26 billion in FY23. “SP Setia recorded bumper new sales of RM5.1 billion in FY23, including land sales of RM836 million. “Excluding land sales, new property sales are estimated at RM4.2 billion in FY23 as SP Setia is setting a new sales target of RM4.4 billion for FY24,” the research firm said in a report. Eco World Development Group Bhd has set a sales target of RM3.5 billion for FY24. MIDF Research, quoting Bank Negara Malaysia (BNM) loan data, said the total loan application for property purchase in 2023 was higher at RM605.3 billion, up by 5.7 per cent year-on-year (YoY). The data said the higher loan application was supported by stronger demand for property as the outlook for the property sector improved. Further, it noted that BNM’s pause in the Overnight Policy Rate (OPR) hike since July 2023 had also underpinned the recovery in buying interest on property. Meanwhile, loan application data is off to a good start in January 2024 as it was higher at RM51 billion, up by 46.5 per cent YoY, as buying sentiment on property remains healthy. “Moving forward, we maintain our  view that demand for properties would be stronger in 2024 as the landscape for the sector is improving,” MIDF Research said. Further, BNM data also showed that the approved loans for the purchase of  property was strong at RM261 billion, up by 7.3 per cent YoY in 2023, driven by the higher loan application in 2023. Besides, the higher percentage of total approved loans over total applied loans of 43 per cent in 2023 against 42 per cent in 2022 had also lifted the approved loan in 2023. Meanwhile, approved loan data in January this year remained encouraging as it grew by 40.8 per cent YoY and 14.1 per cent month-on-month (MoM) to RM20.4 billion, driven by the higher loan application. MIDF Research said the higher approved loan bodes well for new sales outlook for property developers. MIDF Research also noted that for the recently concluded earnings reporting season, four out of six property companies reported earnings that came in within expectations namely Sunway, Matrix Concepts Holdings Bhd, UOA Development Bhd and Mah Sing. Meanwhile, SP Setia reported earnings that came in above expectations as earnings in FY23 were lifted by land sales gain of RM110 million and better margin, MIDF Research noted. “On the flip side, earnings of IOI Properties Group Bhd missed expectations as earnings contribution from China was weaker than expected. “Meanwhile, property companies that concluded FY23, namely Sunway, SP Setia, Mah Sing Group and UOA Development, reported higher new sales in FY23,” MIDF Research said. Touching on overhang units, MIDF Research said data released by the National Property Information Centre (NAPIC) showed residential overhang increased marginally to 25,816 units in the fourth quarter (Q4) of 2023 from 25,311 units in the third quarter (Q3) of last year. Perak had the highest number of residential overhangs, at 4,598 units in Q4 2023, up from 3,625 units in Q3 2023. Meanwhile, Johor has the second-highest residential property overhangs at 4,228 units in Q4 2023, which declined from 4,500 units in Q3 2023. Kuala Lumpur has the third-highest residential property overhangs at 3,535 units in Q4 2023, an increase from 3,111 units in Q3 of the same year. “Despite the marginal increase in the overhang, we think that the overall declining trend in overhang eased concern on oversupply of property. “Note that the residential property overhang of 25,816 units in Q4 2023 was lower than 27,746 units in Q4 of 2022 and 36,863 units in Q4 of 2021,” MIDF Research said. MIDF Research maintains a Positive stance on the property sector and remains sanguine about the outlook for property companies. The research firm said buying sentiment on properties is expected to remain healthy going forward as the property sector’s landscape improves. New sales of property companies are improving, which should translate into better earnings visibility going forward, it said. “Our top picks for the sector are Mah Sing (Buy with a target price of RM1.12) and Matrix Concepts (Buy with a target price of RM1.91). “We like Mah Sing for its quick turnaround strategy and high exposure to affordable homes via its M series projects. “Besides, its growing presence in the industrial property segment will support earnings growth in the medium to long term. “Meanwhile, we like Matrix Concepts as its new sales remain encouraging while landbank expansion in Labu, Negeri Sembilan, will further buoy earnings growth. Besides, the dividend yield of Matrix Concepts is attractive at 5.6 per cent,” MIDF Research said.

KUALA LUMPUR: Pilgrims Fund Board’s property unit TH Properties Sdn Bhd (THP) sees the demand for residential and commercial properties as still resilient despite various setbacks such as the Covid-19 pandemic, softer global economy and the spike in raw material prices. TH Properties board member Zarulakmar Abd Aziz said the company is optimistic that its latest property offering, the Felora and Bizcentre, will be well-received by buyers and investors due to its location, competitive prices and modern design. THP unveiled its latest developments, Felora and Bizcentre Phase 2, at the Karnival Warisan Puteri 2 in Seremban recently. Felora, a residential development, comprises 86 double-storey terrace houses with a gross development value of RM38.95 million. With prices from RM409,000 to RM659,200, Felora offers homebuyers to invest in a meticulously designed unit that combines comfort, style and quality living within the thriving Warisan Puteri 2 community. In addition to the residential offering, THP also launched Bizcentre Phase 2. The 28 units of two- and three-storey shop offices have a built-up area ranging from 2,170 sq ft to 6,868 sq ft, with prices starting from RM648,000 to RM2.33 million. Bizcentre Phase 2 aims to fulfil the demand for commercial property in the area and to cater to businesses seeking a location in a prime commercial hub. Zarulakmar said the success of previous developments in Warisan Puteri 2, such as Tierra, another double-storey terrace house project, is a testament to buyers’ trust towards THP’s products. The one-day Karnival is a celebration of community and engagement, and THP showcased its latest offerings that foster inclusive living experiences with its customers.

KUALA LUMPUR: Iskandar Waterfront City Bhd (IWC) has unveiled its strategic master development plan for the next ten years, as the company is poised for significant growth with a landbank of approximately 1,000 acres holding freehold status. The company’s development pipeline includes the phased development of 146 acres, with a total gross development value (GDV) of RM4.3 billion. These developments will be strategically located near the Johor Bahru–Singapore rapid transit system (RTS) Bukit Chagar station and Johor Bharu city centre, capitalising on its proximity to key transportation hubs and urban centres. One of the flagship projects in the pipeline is Danga Rivera, a mixed waterfront development in the mature area of Permas Jaya. This project will feature shop offices, retail spaces, hotels, and service suites, with an expected GDV of RM500 million. Today, IWC signed a memorandum of understanding (MoU) with Meliá Hotels International SA, a leading hotel company from Spain, for this development. Located just 7km from the RTS, Danga Rivera’s strategic location is expected to attract investors and stakeholders. IWC spokesperson Yap Meow Hin said the company’s collaboration with Meliá Hotels International underscores its commitment to excellence and vision of transforming landscapes to enrich communities. “We are excited to partner with a global hospitality leader to bring a new dimension of luxury and service to Johor Bharu. “This is an exciting time for IWC as we capitalise on the strategic location of our land bank, which is within a 10-15 minute drive to the RTS Bukit Chagar station,” he said in a statement. Another highlight of IWC’s development plan is Tebrau Bay, a waterfront township located at the serene river mouth of Sungai Tebrau. Focused on health and wellness, this development spans 100 acres and is poised to offer quality waterfront living. Located just 15 minutes from the RTS Bukit Chagar Station, Tebrau Bay is expected to generate a total GDV of RM 3.5 billion in several phases, starting with a pilot phase of 30 acres. IWC is also developing Danga Heights, a vibrant mixed-use project focusing on retail. This development, spanning 29.3 acres, will feature 2-storey plus mezzanine shop offices in its first phase, with an expected GDV of RM330 million. The project will also include a branded hotel, office, and service apartment and is strategically surrounded by approximately 500,000 residents in the mature residential area of Kempas. Overall, IWC is confident in developing and leveraging its extensive landbank, strategically located near mature areas and the RTS station and Johor Bharu city centre. The first phase of the three key development projects is expected to generate a total GDV of RM1.8 billion by developing approximately 63 acres over the next five years.

KUALA LUMPUR: The domestic real estate market is expected to see continued resilience in 2024, with certain segments demonstrating sustainable growth. According to JLL Global Capital Outlook 2024, this positive trend is expected to be fueled by several key factors, namely stable macroeconomic growth partly attributed to multinational companies’ wider adoption of the ‘China Plus One’ strategy. By diversifying their operations beyond mainland China, these companies are expected to drive increased business activity in Malaysia’s office, logistics, and industrial sectors, contributing to overall economic growth. Secondly, real estate growth is also due to the financial markets anticipated to demonstrate stability, fostering optimism among investors. This stable environment is expected to encourage continued investment in the real estate sector. Furthermore, strong domestic demand is expected to play a significant role in bolstering the market. This robust demand will support growth across various segments, ensuring a well-rounded market performance. Further, the continued development of technology and the implementation of relevant measures are expected to enhance and innovate the real estate industry. These advancements can streamline processes, improve transparency, and open up new opportunities for buyers and sellers. Overall, the report said 2024 appears to hold promise for the Malaysian real estate market. Supported by stable macroeconomic growth, financial market stability, strong domestic demand, and technological advancements, the market is well-positioned for continued resilience and sustainable growth. “We have observed that investors are displaying a more positive outlook towards the Malaysian real estate market, driven by the favourable dynamics and robust recovery witnessed over the past six quarters. “However, their primary focus continues to be on the three core segments with the highest growth potential – residential, logistics and industrial, and data centres,” JLL Appraisal & Property Services Sdn Bhd head of research Yulia Nikulicheva said in a statement. On risks, the JLL Malaysia report said one potential concern is the escalation of local conflicts worldwide. This could ripple effect, leading to rising global inflation and further disruptions to global supply chains. Both of these factors could dampen the positive outlook for the real estate market. Another potential roadblock is a slowdown in the Chinese economy. The report said that as China is a major player in the global market, a significant slowdown in its growth could have implications for various industries, including real estate, potentially impacting Malaysia as well. Finally, slower growth in key global markets, such as Western Europe (particularly Germany) and the United States, could also significantly impact the dynamics of the Malaysian market. This is because Malaysia heavily relies on exports of manufactured goods to these economies, and their performance directly influences future market conditions. While these risks cannot be ignored, it is important to remember the underlying strengths of the Malaysian real estate market. By acknowledging these potential challenges and proactively developing strategies to mitigate them, stakeholders can ensure the market continues its trajectory of resilience and sustainable growth in the coming year, the JLL report noted.

KUALA LUMPUR: Leading integrated industrial space solutions provider AME Elite Consortium Bhd (AME) saw its net profit double to RM28.5 million in the third quarter (Q3) ended December 31, 2023 (FY24) from RM13.9 million posted in the same quarter last year on stronger contribution from its industrial parks, and fair value gain from the sale of an industrial property from inventories to AME Real Estate Investment Trust (AME REIT). Notably, AME also posted a robust revenue growth of 31.2 per cent in Q3 FY24, reaching RM176.2 million from RM134.3 million previously, attributed to increased contributions from property development, engineering, and property investment and management services segments. The property development segment, primarily driven by contributions from the company’s i-Park@Senai Airport City and i-TechValley industrial parks, achieved 96.4 per cent higher revenue of RM98.5 million versus RM50.1 million previously, on higher stages of work completed and timing of income recognition of industrial properties. Similarly, the property investment and management services segment reported revenue growth of 22.7 per cent to RM16.7 million in Q3 FY24 from RM13.6 million in the previous quarter. The improvement was attributed to a higher number of leased industrial properties, increased rental income from workers’ dormitories, and management services income from industrial park tenants. Meanwhile, the construction segment experienced a lower revenue contribution of RM35.2 million in Q3 FY24 versus RM66.3 million previously due to the stage of completion of ongoing projects. In contrast, the engineering services segment witnessed 505.1 per cent revenue growth to RM25.8 million from RM4.3 million previously, also attributed to the stage of completion of projects. AME group managing director Kelvin Lee Chai said the company’s industrial parks continue to experience robust demand from international players, attracting companies from major markets such as China, Hong Kong, the United States, Singapore, and more. “This sustained interest underscores the appeal of Malaysia as an important destination for business expansion, further reinforced by the reputation of our sustainably designed and industrial parks. “During our latest nine-month financial period, we successfully secured more than RM450 million in new industrial property sales and bookings, positioning us for sustainable performance going forward. “Looking ahead, we are poised to capture even more demand from companies seeking to expand their presence in Southeast Asia, further supported by expansions of our industrial parks at strategic locations in Malaysia,” he said in a statement. For the nine-month period (9M) FY24, AME recorded a net profit growth of 10.9 per cent to RM86.3 million from RM77.8 million in the same period last year while revenue rose 51.0 per cent to RM632.1 million from RM418.7 million previously. AME boasts a well-regarded track record, marked by the successful establishment of five industrial parks in Johor. Ongoing projects include i-Park@Senai Airport City and i-TechValley at the Southern Industrial and Logistics Clusters (SILC). Additionally, AME has completed i- Park@Indahpura, i-Park@SILC and District 6@SILC. Among these developments, i-TechValley stands out as AME’s newest addition, launched in 2022. Spanning 169.8 acres within SILC, i-TechValley features a specialised medical and healthcare cluster that has garnered significant interest from major industry players across global markets.

KUALA LUMPUR: Property player Meta Bright Group Bhd (MBG) posted a net profit of RM2.7 million, representing an increase of 143 per cent year-on-year (YoY) for the second quarter (Q2) ending June 30, 2024 (FY24) from RM1.11 million posted in the same quarter last year. The net profit reflects the company’s strategic execution in various sectors. However, operational costs were higher this quarter due to significant corporate activities and investments in business expansion. The company’s revenue stood at RM9.98 million, a 25 per cent increase from RM7.95 million posted last year. Executive director of corporate and strategic planning Derek Phang Kiew Lim said the company’s strategic initiatives over the past few years are now beginning to bear fruit, reflected in its improved financial performance. “Our focus on sustainable and high-demand sectors, coupled with strategic acquisitions like Expogaya Sdn Bhd, positions us strongly for continued growth. “We are confident in the prospects of MBG as we continue to innovate and adapt in an ever-evolving market landscape. “We remain confident that our efforts will lead to sustainable growth and enhanced shareholder value,” he said in a statement. The company’s increased costs are primarily due to the acquisition-related expenses for Expogaya Sdn Bhd, including professional fees and costs associated with the extraordinary general meeting. Further, increased costs also from the development costs for the leasing business in Australia, including US$5 million (around RM23.89 million) in loan expenses and professional fees. Further, the company was also impacted by the increased depreciation following the completion of the latest phase of the Grand Renai Hotel renovation. Also, there are elevated food and beverage costs as the hotel sector looks to expand and grow this part of the business. Despite these challenges, MBG remains steadfast in its commitment to refining its business operations. The company is confident that the outcomes of these business development initiatives will become increasingly evident following the completion of several corporate exercises, including fundraising through debt and equity, business diversification, and acquisitions. The acquisition of Expogaya marks the company’s venture into the construction sector, aligning the company with the recovering Malaysian property market. This acquisition solidifies the company’s position in the construction sector and ensures a steady supply of materials for its development projects, enhancing its competitive edge in property development. On the other hand, the expansion into the leasing business in Australia signifies a commitment to sustainable practices in the mining industry and its capability to identify and capitalise on profitable opportunities in the global market. This division entails an agreement with Mt Cuthbert Resources Pty Ltd, a copper mining company in Australia, which is expected to generate recurring monthly revenue of approximately AUD$ 223k. This move underlines MBG’s capability to identify and capitalise on profitable opportunities in the global market. In the hospitality sector, the Grand Renai Hotel continues to be a significant contributor to its revenue. The hotel’s recent renovations and enhanced focus on the food and beverage segment are designed to augment the guest experience and improve operational efficiency. As the Malaysian property market shows signs of recovery, MBG’s strategic positioning in property development and the concrete business is expected to yield positive results in the company’s financial performance in upcoming quarters.

KUALA LUMPUR: Mah Sing Group Bhd is riding high on savvy execution, a quick turnaround business model, and a strong focus on affordable properties at strategic locations with strong demand. AmInvestment Bank Bhd, in a report, expect an uptick in its FY24 net gearing ratio as a result of finalising payments for several land acquisitions. In the fourth quarter (Q4) FY23, Mah Sing’s net gearing ratio was low at 0.08x, down from 0.13x in the third quarter (Q3) FY23. The bank-backed research firm said Mah Sing is currently under negotiations with several parties for potential land acquisitions in Klang Valley, Penang and Johor for the development of residential and industrial properties. On earnings, AmInvestment Bank said Mah Sing’s FY23 net profit of RM218 million exceeded expectations. “The net earnings were 8 per cent above our earlier forecast and 11 per cent above the street’s estimation. “The variance in our forecast was mainly due to stronger-than-expected contribution from its property development segment. “Hence, we raise FY24 and FY25 net profit by 7 per cent to account for stronger-than-expected sales from its property development segment,” the research firm said. Year-on-year (YoY), Mah Sing’s FY23 revenue rose 12 per cent while net profit surged 38 per cent. The research firm noted that this was mainly driven by a stronger property topline (15 per cent YoY), which was contributed by higher property sales and revenue recognised for projects under construction. Further, Mah Sing’s operating loss of the manufacturing division was narrower at RM5 million in FY23 compared to an operating loss of RM23 million in FY22, mainly due to ongoing cost optimisation measures  of its glove-making operation. Year-to-date (YTD), Mah Sing has secured new sales of RM2.3 billion (+7 per cent YoY), exceeding its earlier target of RM2.2 billion. The significant sales contributors are M Astra (23 per cent), Meridin East (18 per cent), M Senyum (11 per cent) and M Vertica (11 per cent). The research firm also noted that Mah Sing launched RM2 billion worth of properties in FY23 with a commendable take-up rate ranging from 84 per cent to 100 per cent. For FY24, Mah Sing is setting a higher sales target of at least RM2.5 billion, supported by planned launches of RM2.8 billion. Meanwhile, the company’s unbilled sales fell 4 per cent quarter-on-quarter (QoQ) to RM2.3 billion, representing a fair cover ratio of 1x FY24 property development revenue. “We maintain a Buy call on Mah Sing with a higher fair value (FV) of RM1.25 from RM1.06 a share previously based on a 45 per cent discount to our rolled-forward sum-of-the-parts (SOP)-based valuation. “We made no changes to our neutral 3-star environmental, social and governance (ESG) rating. “The FV implies a FY25 price-to-earnings (PE) of 11x, at parity to the average of mid-cap property stocks currently,” AmInvestment Bank said.

KUALA LUMPUR: Property developer Sunsuria Bhd posted a net profit of RM1.6 million for the first quarter (Q1) ended December 31, 2023 (FY24) from RM1.1 million posted in the same quarter last year. The lower net earnings growth rate was due to the higher profit attributable to minority interest as a 51 per cent held subsidiary carries out the Bangsar Hill Park project. For Q1 FY24, Sunsuria’s revenue increased to RM137.3 million compared to RM78.9 million recorded in the same quarter year. This growth was primarily driven by advancements in the construction progress for its ongoing residential projects of Tower A, D, and E of Bangsar Hill Park, along with the integrated mixed development of Sunsuria Forum 2 in Setia Alam. Additionally, new projects launched last year, such as Seni Residences at Sunsuria City and Sunsuria Kejora Business Park (Phase 1), a semi-detached industrial development in Puncak Alam, have contributed to the uptick in revenue for the quarter. Furthermore, the sale of completed inventories, including Tangerine Suites and Giverny Walk at Sunsuria City, also contributed positively to the Group’s revenue. Sunsuria recorded a three-fold increase in profit before tax (PBT) to RM13.8 million for Q1 FY24 compared to RM4.5 million previously in correspondence with the higher revenue. Group chief executive officer Tan Wee Bee said the company kicked off FY24 with promising results, achieving RM114.3 million in property sales during Q1, driven by contributions from completed projects, ongoing developments, and new launches. “Our unbilled sales as of December 31,  2023, reached RM889.5 million, supporting future earnings visibility as construction progresses. “Looking ahead, our focus remains on seeking development opportunities in locations prioritising customer satisfaction and convenience. “With an extensive land bank inventory spanning 2,052.3 acres and a potential gross development value (GDV) of RM8.00 billion, we are poised for new opportunities. “Sunsuria maintains a prudent approach, continually monitoring economic conditions and market trends to navigate challenges and capitalise on opportunities within Malaysia’s dynamic economic landscape,”  Tan said in a statement. In a strategic move for corporate development, Sunsuria announced in January this year the proposed acquisition of an additional 33.0 per cent equity interests in Bangsar Hill Park Development Sdn Bhd (BHPD). This property development company owns and develops the Bangsar Hill Park development project with a total GDV of approximately RM2.9 billion. Currently holding a 51 per cent stake, Sunsuria’s ownership in BHPD will rise to 84 per cent upon completion of the acquisition. This strategic step aims to consolidate BHPD’s financial performance further, ensuring an increased contribution to Sunsuria’s net profit. “Recognising the promising potential of the Bangsar Hill Park project, we aim to leverage our extensive property expertise for further value creation,” Tan said, emphasising Sunsuria’s commitment to strategic growth and continued success.

KUALA LUMPUR: Sime Darby Property Bhd (SDP) posted revenue of RM3.4 billion and an operating profit of RM606.4 million for the financial year ended December 31, 2023 (FY23). This marks its second consecutive year of positive results following its FY22 record of RM436.2 million operating profit. The company achieved RM3.3 billion in sales, surpassing its RM2.7 billion sales target. Year-on-year (YoY) net profit grew by 29 per cent, totalling RM407.9 million compared to RM315.8 million in the previous year. SDP declared total dividends of 2.5 sen per share in FY23. The company’s FY23 revenue marked a 25 per cent YoY improvement, with profit before tax (PBT) registering a 33 per cent YoY increase to RM610.3 million. The increase in revenue and PBT is primarily attributed to the robust sales performance and higher site progress in major townships within the property development segment, supported by contributions from non-core land monetisation activities. SDP group managing director Datuk Azmir Merican said the company’s performance, coming on the heels of FY22’s results, demonstrates its operational and financial competencies, against the backdrop of an uncertain operating environment in 2023 as a result of supply chain constraints, foreign exchange movement and labour issues. “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,” he said in a statement. In FY23, SDP achieved higher revenue and profitability, driven by the property development segment contributed to 94 per cent of total revenue and a 33 per cent YoY increase in PBT. In the investment and asset management (IAM) segment, KL East Mall’s 90 per cent occupancy rate contributed to the segment’s revenue of RM107.8 million, with PBT recorded at RM15.8 million. The leisure segment’s revenue grew by 11 per cent YoY to RM93.8 million. SDP launched products worth RM4.0 billion in gross development value (GDV), of which 17 per cent comprised industrial products in Elmina Business Park, Bandar Bukit Raja, and Serenia City in Selangor,  Hamilton Nilai City and Nilai Impian in Negeri Sembilan and Bandar Universiti Pagoh in Johor. Residential landed, and high-rise products recorded a notable average take-up rate of 73 per cent for the same period, with Emilia in Nilai Impian and Teja in SJCC recording a 100 per cent take-up rate. SDP’s FY23 sales achievement of RM3.3 billion comprised a diversified product mix, including residential landed 36 per cent, high-rise residential 27 per cent, and industrial products 31 per cent. The industrial and high-rise residential segments recorded improvements, contributing 15 per cent and 2 per cent growth YoY, amounting to RM1.0 billion and RM889 million, respectively. Overall bookings as of February 4, 2024,  stood at RM1.9 billion. As of December 31, 2023, SDP maintained its unbilled sales of RM3.6 billion, providing further earnings visibility for the next three years. Completed inventories stood at RM390.3 million in GDV, while cash balances stood at RM603 million with a strong operating cash flow, excluding land acquisition, of RM617 million. SDP recorded a net gearing ratio of 23 per cent. On the international front, SDP’s Battersea Power Station project achieved £243 million (~RM1.4 billion) of residential sales in 2023. FY23 was a pivotal year for the project, with more than eleven million visitors welcomed since October 14, 2022. “Our SHIFT25 transformation journey is delivering results, and this is driving our optimism, despite the challenges that our sector may face in FY2024 and beyond. “It has taken a great deal of energy and effort to arrive at where we are today, and we are in a prime position to grow for the long term,” Azmir said. SDP declared a second single-tier dividend of 1.5 sen per share in Q4 FY23 bringing  the total dividends for FY23 to 2.5 sen per share, amounting to RM170 million.