Latest news with #SDProperty
New Straits Times
4 days ago
- Business
- New Straits Times
Negri Sembilan, a major growth frontier for SD Property
KUALA LUMPUR: Negri Sembilan has emerged as a key growth frontier for some property developers particularly Sime Darby Property Bhd (SD Property). SD Property plays an instrumental role as one of the lead developers of the Malaysia Vision Valley 2.0 (MVV2.0) development corridor. MVV2.0 is a catalytic development initiative aimed at unlocking the economic potential of Negri Sembilan. As part of the National Physical Plan, MVV2.0 is intended to transform the southern corridor of the Klang Valley into a new growth frontier, leveraging strategic connectivity and proximity to Greater Kuala Lumpur. SD Property contributes to the activation of this corridor by unlocking its sizeable landbank in Nilai and Labu. Currently, SD Property holds about 4,000 acres of remaining land within MVV2.0, with an estimated remaining gross development value of RM16 billion. TA Securities said SD Property's management sees Negri Sembilan as a fast-emerging hotspot, offering industrial land at significantly more competitive pricing, about half the cost of similar offerings in Selangor while enjoying superior accessibility. This view is increasingly reflected in the group's sales composition, as Negri Sembilan accounted for 20 per cent of its total property sales in the quarter, up markedly from an average of just five per cent in FY24. The strong demand for units at Hamilton Nilai City and the positive initial response to Vision Business Park (VBP) highlight the state's growing importance as a strategic industrial destination. VBP, a 760-acre integrated industrial and commercial estate located within MVV2.0, is a key project for the property developer. Launched in April, VBP boasts an estimated gross development value of RM2.4 billion. It is situated near key infrastructure nodes including KLIA, KLIA2, the Nilai Inland Port and the North-South Expressway. The project is designed to attract logistics operators, light manufacturers, and technology-driven businesses, with product offerings ranging from ready-built factories and industrial plots to R&D facilities and commercial shop offices.
New Straits Times
28-05-2025
- Business
- New Straits Times
SD Property clocks RM118.41mil net profit on RM978.69mil revenue in Q1
KUALA LUMPUR: Sime Darby Property Bhd (SD Property) posted a net profit of RM118.41 million in the first quarter ended March 31, 2025 (1Q25) from RM123.58 million a year ago, on the back of lower revenue. SD Property's revenue for the quarter eased to RM871.62 million from RM978.69 million previously, the group's filing to Bursa Malaysia showed. This was due to a 12.7 per cent reduction in revenue from property development segment. Its earnings per share came in lower at 1.74 sen compared to 1.82 sen in 1Q24. Despite the lower revenue, SD Property said the group sustained its profitability, supported by a turnaround in the investment and asset management segment coupled with profit from compulsory land acquisition, which offset the lower segment results from property development segment and leisure segment. It said the result was enhanced by lower finance costs due to higher interest capitalisation, in line with the increase in qualifying assets as well as lower marketing and selling expenses driven by more cost-effective promotional efforts during the quarter. On a segmental basis, the group's property segment revenue fell 12.7 per cent to RM808.3 million from RM925.6 million a year ago. This was due to lower financial progress from industrial products, as they had yet to meet the revenue recognition criteria. The investment and asset management segment delivered a strong performance in current financial period, with revenue rising by 33.3 per cent to RM38.7 million from RM29.1 million a year ago, driven by the retail sub-segment. Its revenue for the leisure segment increased modestly by 2.2 per cent to RM24.5 million from RM24.0 million supported by higher banqueting and event-related activities, particularly in March in conjunction with the Ramadhan season. SD Property launched a total gross development value (GDV) of RM656.5 million in 1Q25, comprising 38 per cent residential landed (RM252.1 million), 32 per cent industrial (RM209.5 million), and 30 per cent commercial (RM194.9 million). The group recorded RM927.5 million in sales for 1Q25, achieving 26 per cent of its full-year target of RM3.6 billion. SD Property's unbilled sales increased to its highest level since 2017 at RM3.8 billion, securing clear earnings visibility for the next three years. Unsold GDV for completed inventories remains low at RM227.2 million, while cash balances remained healthy at RM714.4 million. The group's net gearing ratio of 27.9 per cent as at March 31, 2025 remains well-capitalised for growth. Commenting on the financial performance, SD Property group managing director and chief executive officer Datuk Seri Azmir Merican said FY25 was off to a solid start, building on the group's record performance last year. "This quarter's results were anchored by margin improvement, firm sales momentum, and rising contributions from our investment and asset management segment," he said in a separate statement. Looking ahead, Azmir said SD Property is positioning itself for sustained performance across all business segments. "As we enter the final year of our SHIFT25 strategy, our focus sharpens on executing with discipline, unlocking value across our portfolio, and strengthening recurring income to deliver sustainable growth," he noted.
New Straits Times
28-04-2025
- Business
- New Straits Times
SD Property first to harness solar energy under ministry's CREAM initiative
KUALA LUMPUR: Sime Darby Property Bhd, in collaboration with Tenaga Nasional Bhd (TNB), has become the first company to harness the power of solar energy under the country's National Energy Transition Roadmap (NETR) via community renewable energy aggregation mechanism (CREAM) initiative. The pioneering project is the first of its kind in the country under the newly-established CREAM framework, introduced by the Energy Transition and Water Transformation Ministry in March 2025. The initiative empowers community-based renewable energy production by leveraging local energy generators and aggregators (LEGA) to decentralise green electricity generation. SD Property group managing director and chief executive officer Datuk Seri Azmir Merican, said its participation in the CREAM initiative with TNB presents a practical and scalable model to unlock solar energy potential within its townships. "By leasing roof spaces from residential properties, without requiring homeowners to install panels, we enable clean energy generation that supports our nearby commercial and industrial developments. "This approach complements our broader decarbonisation strategy, aligns with national energy objectives, and directly contributes to our emissions reduction targets," he said in a statement. Working with TNB's solar subsidiary GSPARX Sdn Bhd, SD Property will enter into lease agreements with residential homeowners interested in participating in this programme, starting with those in the City of Elmina. Rooftops of participating homes will be utilised to generate electricity, which will be exported via the local distribution line within a 5km radius for use at SD Property's commercial and industrial developments. The CREAM mechanism enables local green consumers (LGC) such as businesses and commercial users to source electricity from LEGA participants through TNB's distribution network. It allows homeowners to lease rooftops to third parties who manage and aggregate these spaces into efficient solar photovoltaic (PV) power systems. The latest collaboration between the two parties comes on the heels of a joint venture established by SD Property and TNB's GSPARX in July 2024, focusing on financing, developing and operating rooftop solar generation projects across selected assets and properties in the former's portfolio. This followed an MoU between the two parties in 2023 to explore sustainable energy infrastructure including solar, EV charging and microgrid systems across the group's townships.
