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.
