Latest news with #SimeDarbyPropertyBhd
New Straits Times
9 hours ago
- Business
- New Straits Times
Sime Darby Property ups minimum wage for B40 workers by 80pct to RM2,700
PETALING JAYA: Sime Darby Property Bhd has raised the minimum living wage for employees in the B40 income group by 80 per cent, from RM1,500 to RM2,700 a month, as part of its commitment to employee well-being and inclusive growth. Its chairman Datuk Rizal Rickman Ramli said the adjustment takes into account the increased cost of living and aims to provide better financial support for lower-income employees. "This initiative highlights our commitment to financial stability and the well-being of our workforce, particularly those most impacted by rising living costs," he said in the group's integrated annual report 2024. The wage hike is part of Sime Darby Property's wider workforce development efforts under its SHIFT25 transformation plan. In 2024, the company recorded a 43 per cent increase in employee training hours and introduced new programmes in areas such as artificial intelligence, sustainable development and urban biodiversity. Rizal said these measures come as the group looks to upskill its workforce in line with evolving industry demands and growing environmental, social and governance expectations. Sime Darby Property's new minimum wage of RM2,700 exceeds the national statutory floor by RM1,000. Under the government's revised minimum wage policy, the monthly wage floor was raised to RM1,700 beginning February this year for employers with five or more workers. Companies with fewer than five employees have until August to comply. Non-compliance is an offence under the National Wages Consultative Council Act 2011 (Act 732) and may result in penalties. The new national rate, announced in Budget 2025, is expected to benefit over 4.3 million workers across the country.
New Straits Times
2 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.
The Star
6 days ago
- Business
- The Star
SimeProp bullish on 2025 after strong 1Q
PETALING JAYA: While keeping a positive outlook for 2025, Sime Darby Property Bhd (SimeProp) remains cautious towards the degree of worldwide volatility beyond this year, especially emanating from the trade tariff situation, and is concerned about its wider impact. Group managing director and chief executive Datuk Azmir Merican remarked that volatility is 'never a good situation', before saying that it is helpful to understand how finalised tariff decisions can affect all parties involved, since Malaysia has substantial business relations with the United States, China and Asean. 'That said, we are rather optimistic for 2025, but it is when we look towards 2026 and beyond, we wonder whether future launches and lending will be affected, not as a primary impact on our properties but as part of a secondary round of impact,' he told a virtual media briefing yesterday following the release of its first quarter of financial year 2025 (1Q25) results. He acknowledged that SimeProp, being a property developer, is highly dependent on the overall economy doing well, which in turn influences investor confidence. Nevertheless, Azmir reiterated the group's bright prospects for the near and medium term, especially throughout 2025. Despite recording a marginally lower net profit year-on-year (y-o-y) of RM118.4mil for 1Q25 as compared to the corresponding period a year ago, Azmir emphasised that 1Q24 was the group's strongest quarter thus far, and the result from 1Q25 was therefore encouraging. This was underpinned by the fact that net profit margin had improved from 12.6% to 13.6% y-o-y in 1Q25. He pointed out that 1Q25 profitability was 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 the property development segment and leisure division. Having launched a total gross development value (GDV) of RM656.5mil in 1Q25, from a goal of RM4bil GDV to be put in place this year, Azmir said SimeProp will launch the remaining GDV of RM3.3bil across the industrial, residential and commercial segments, with respective shares of 30%, 59% and 11%. The group has a sales target of RM3.6bil for 2025. Of interest, industrial products contributed to half of the RM927.5mil sales figure achieved by the group in 1Q25, with residential high rise products contributing in total 27% of sales, while residential landed properties made up 16%. Commercial products, meanwhile, contributed to 7% of sales, driven by sustained demand across our maturing townships. Azmir observed that sales remained concentrated within central and Greater Klang Valley, with a notable increase in contribution of 20% from Negri Sembilan. Explaining the relatively larger share of sales contribution from the group's industrial segment, chief operating officer for township development Apollo Leong said in the second half of 2024, SimeProp launched nine phases of industrial properties, compared to only three phases of landed residential developments. 'The big jump in sales contribution by industrial properties is due to the timing of their recognition, although we do have a heavy pipeline of industrial properties as well,' he said. As such, Azmir maintained that residential properties would catch up to industrial products with regards to sales contribution, although with the group also focusing on industrial launches, he is expecting the latter segment to yield more than a 30% share in sales by end of 2025. Meanwhile, commenting on its Battersea Power Station (BPS) project, he said the take-up rate for the residential component of Phase 3B (Electric Boulevard) had increased to 74%, representing a 6% quarter-on-quarter growth, while the office leasing rate remained at 45%. He noted that footfall at BPS also grew a healthy 8% y-o-y in 1Q25, before remarking that since its opening in October 2022, the location has welcomed over 30 million visitors. 'More importantly, we have secured detailed planning approval and consent from Wandsworth Council for Phase 3C of BPS, comprising a mix of residential, retail, community and leisure development, with anticipated completion in 2029,' said Azmir. Elaborating on the group's strategy for BPS going forward, he said leasing enquiries for the office building has been strong, and rental rates have been encouraging. However, he said SimeProp is more keen to take in tenants for longer tenures, with the aim that they can commit for up to 10 years. 'Since we have leased out almost half the building, and because securing long tenancies remains our goal, we are now selective with our prospective tenants. 'We would prefer they commit for the long term, because then we can have an idea of how they can provide stabilised rental income for the group,' said Azmir. On the other hand, he said rental rates in the United Kingdom have shot up faster than expected, which has become a double-edged sword, because while this means there is a higher likelihood that tenants will be able to pay rental rates above the group's projections, it could also represent the fact that it may take a longer time for space to be taken up. For the rest of 2025, Azmir reported that the company is guiding for a gross profit margin of 20% to 25%, and a debt-to-equity ratio of less than 0.5 times by balancing active working capital and investments for future growth. It is also aiming to ensure optimal asset turnover by maintaining at most 10% of completed stocks. 'We see strong growth from the property development segment across 26 townships, driven by a well-diversified mix of residential, industrial and commercial products. 'Concurrently, our retail segment is also growing, supported by two wholly-owned malls, with a combined net lettable area (NLA) of approximately 608,000 sq ft and the upcoming KLGCC Mall with a NLA of about 240,000 sq ft,' he said. The group also has an existing land bank of about 11,400 acres with a GDV exceeding RM100bil to be unlocked, as it is also expanding into the high-growth data centre asset class with two hyperscale data centres at Elmina Business Park spanning across 126 acres, on top of a secured total lease value of RM7.6bil over a period of 20 years.
New Straits Times
7 days ago
- Business
- New Straits Times
Sime Darby property optimistic on 2025 outlook, backed by RM3.8bil unbilled sales
KUALA LUMPUR: Sime Darby Property Bhd remains optimistic about its outlook for 2025, underpinned by record-high unbilled sales of RM3.84 billion in 2024, despite concerns over ongoing global tariff uncertainties. Group managing director Datuk Azmir Merican said the group's focus on execution and portfolio diversification has enabled it to navigate external headwinds effectively. "A key concern for this year and 2026 is whether future launches and bank lending will be affected," he said during a virtual press conference today. In the first quarter ended 31 March 2025 (Q1FY25), Sime Darby Property recorded RM927.5 million in sales, representing 26 per cent of its full-year target of RM3.6 billion. Of this, industrial products contributed 50 per cent, followed by residential high-rise units at 27 per cent, landed homes at 16 per cent, and commercial properties at seven per cent. Azmir said the group plans to launch RM3.3 billion in gross development value across 3,044 units for the remainder of 2025. This will include industrial projects worth RM1.21 billion, residential landed homes at RM1.12 billion, residential high-rise units at RM1.07 billion, and commercial properties at RM546 million. Internationally, the group's flagship Battersea Power Station development in the United Kingdom continues to gain traction. Footfall increased eight per cent year-on-year in Q1FY25, bringing total visitors since its 2022 opening to over 30 million. The Phase 3B (Electric Boulevard) residential component recorded a take-up rate of 74 per cent, up six per cent quarter-on-quarter, while commercial leasing remains steady at 45 per cent, with efforts ongoing to secure more long-term tenants. In May 2025, the property developer secured planning approval for Phase 3C, which will comprise 306 new homes including 121 senior living units with anticipated completion by 2029. Azmir highlighted the group is scheduled to open the upcoming KLGCC Mall within the prestigious Kuala Lumpur Golf & Country Club (KLGCC) precinct in the second half of the year. The new retail asset is expected to strengthen Sime Darby Property's recurring income strategy, joining its existing investment properties such as KL East Mall and Elmina Lakeside Mall. He added the group's SHIFT25 transformation agenda, aimed at becoming a fully integrated real estate player by the end of 2025, is progressing steadily. These goals will be further supported by the group's growing industrial portfolio, particularly in data centre leasing, logistics parks, and warehouse operations, alongside improving performance across its retail segment.
The Star
28-05-2025
- Business
- The Star
Sime Darby Property hits RM928mil in 1Q25 sales
Sime Darby Property group managing director Datuk Seri Azmir Merican. PETALING JAYA: Sime Darby Property Bhd recorded RM927.5mil in sales in the first quarter of this year (1Q25), achieving 26% of its full-year target of RM3.6bil for this year (FY25). In a statement, the group said sales were led by industrial products, contributing RM461.5mil (50%), followed by residential high-rise at RM246.3mil (27%), residential landed at RM127.9mil (14%) and commercial offerings at RM65.3mil (7%). 'New launches accounted for 61% (RM564.6mil) of total sales, driven primarily by industrial products from Elmina Business Park and Serenia Industrial Park, and supported by residential high-rise developments such as The Reya in Taman Melawati, Ophera in KLGCC Resort, and Kanopi Residences in the City of Elmina – reflecting strong demand for the group's latest offerings. 'Overall bookings as of May 18, 2025 stood at RM1.6bil.' For 1Q25, the group recorded revenue of RM871.6mil, operating profit of RM189.1mil, and pre-tax profit and profit after tax and minority interest of RM179.6mil and RM118.4 mil respectively. The group recorded margin improvements in gross profit at 32.5% (1.5% year-on-year), exceeding its guidance range of 20% – 25%, supported by disciplined cost management and contributions from a well-balanced product mix, with higher margin contributions from industrial, residential landed, and commercial products. 'Pre-tax profit remained stable at RM179.6mil, while pre-tax profit margin improved to 20.6% (2.1% y-o-y), primarily driven by stronger contributions from the investment and asset management (IAM) segment, which recorded a 61% year-on-year growth in pre-tax profit, led by the retail sub-segment.' Sime Darby Property group managing director and chief executive officer Datuk Seri Azmir Merican said FY25 has been 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 IAM segment,' he said in a statement. Meanwhile, the group's unbilled sales increased to its highest level since 2017 at RM3.8bil, securing clear earnings visibility for the next three years. 'Unsold gross development value for completed inventories remains low at RM227.2mil, while cash balances remain healthy at RM714.4mil.' Additionally, the company said its net gearing ratio of 27.9% as at March 31, 2025 remains well-capitalised for growth. 'In April 2025, the group's RM800mil sukuk issuance as part of its RM4.5bil programme was oversubscribed by 6.7 times with tightest credit spreads achieved despite prevailing market uncertainties, a clear testament to strong investor confidence in Sime Darby Property's long-term strategy and financial resilience.
