ARA DAMANSARA, 26 AUGUST 2020 – Sime Darby Property Berhad (“Sime Darby Property” or “the Group”), released its results for the first half-year ended 30 June 2020 which saw the Group registering a revenue of RM765.0 million while recording a loss attributable to owners of the Company of RM67.6 million.

First six-month period review

The Group’s performance was affected by the closure of sales galleries and suspension of development activities during the enforcement of the Movement Control Order (“MCO”) throughout the period under review.

The Property Development segment registered a loss of RM89.5 million as compared to RM248.6 million profit in the corresponding period of the previous year. Arising from a review of development projects and launches, a write-down of completed inventories, write-off of development expenditure and impairment of other assets totalling RM98.2 million were recorded.

For the period under review, Property Investment segment recorded a loss of RM4.5 million as compared to a profit of RM8.4 million in the corresponding period of the previous year. This was largely due to the closure of assets and reduced occupancy rates, as well as the impact of rental rebates during the enforcement of the MCO. The segment was further dampened by the pre-opening expenditure incurred for the KL East Mall, the Group’s wholly owned retail centre in Taman Melawati.

The Leisure segment registered a loss of RM15.8 million as compared to a loss of RM8.6 million in the corresponding period of the previous year. This was mainly attributed to the closure of Leisure properties namely TPC Kuala Lumpur and Sime Darby Convention Centre during the MCO, which significantly affected the contribution from golfing and events revenue.

The corresponding period in financial year 2019 had also included one-off gains through land sales totalling RM147.0 million and disposal of assets totalling RM208.8 million.

Successful online campaigns and recent achievements.

Leveraging on its digital capabilities, the Group launched various online campaigns from 25 March to 5 July, garnering RM680 million in bookings during the early enforcement of the MCO.

The Group had also recently re-introduced the Spotlight 8 campaign featuring, among others, four new launches of freehold and landed residential homes. The campaign was kickstarted with the launch of Elmina Green Three which registered a 100% take-up rate of Phase 1. Upcoming new launches in the third quarter of the financial year include Serenia Ariya in Serenia City, Selangor and Embun 2 in Bandar Ainsdale, Negeri Sembilan.

“The Group remains focused on clearing its inventories of completed unsold products and intensifying marketing and sales efforts. Despite the soft market, our campaigns are well received, and the digital marketing strategy has elevated sales performance,” said Sime Darby Property Group Managing Director Dato’ Azmir Merican.

“In navigating the uncertainties and aligning to current market sentiment, we have reviewed the product pipeline and will continue to ensure that the right products at the right price points are offered to our customers” he added.

Sime Darby Property was also included as a constituent in the FTSE4Good Index Series (FTSE4Good BURSA, FTSE4Good Emerging Market and FTSE4Good ASEAN 5) by FTSE Russell for a third consecutive year. The Series independently measures the performance of company’s Environmental, Social and Corporate Governance (“ESG”) practices.

Outlook for the rest of FY2020

The Group foresees a gradual economic recovery as a result of the Government’s various stimulus packages and policy revisions such as the Home Ownership Campaign 2020 (“HOC”) and the revised Overnight Policy Rate (“OPR”) at 1.75%. These policies augurs well for the Property sector and are expected to incentivise residential purchase especially as a long-term investment asset class thus softening the impact of the COVID-19 pandemic.

Riding on the HOC, the Group will intensify its marketing efforts and secure signed sales through bookings conversion. Bookings currently stands at RM1.1 billion as at 31 July 2020.

In the near term, the Group remains focused on maintaining its financial discipline through cost rationalisation initiatives as well as cashflow and inventory management.

Unbilled sales in hand is at RM1.5 billion, coupled with a targeted pipeline of new launches totalling RM1.0 billion.

The Group will continue to focus on developing mid-range and affordable residential products as the category is still dominating the market.

The Group recognises that the first half of 2020 was difficult and challenging. We are however already seeing promising signs of economic recovery. As reflected by our strong fundamentals and resilient financial position with net gearing ratio currently at 27%, the Group’s long-term position remains healthy. We therefore have the potential to ride on the improved outlook going into year 2021.

*ENDS*

About Sime Darby Property Berhad

Sime Darby Property is a leading property developer with a strong success rate of developing sustainable communities for over 47 years. With 24 active townships/developments, Sime Darby Property has a wide reach that encompasses assets and operations across the globe. It marks its presence in the UK as part of a Malaysian consortium to develop the iconic Battersea Power Station Project in central London.

As a responsible corporate player, Sime Darby Property and its philanthropic arm Yayasan Sime Darby (YSD) actively roll out various initiatives to assist the underprivileged communities living within and nearby its townships nationwide. A multi-award winning property group with numerous international and local accolades, Sime Darby Property is the only Malaysian property developer to be selected as an index component of Dow Jones Sustainability Indices (DJSI) for the second consecutive year.

It is also the first Malaysian property developer to be awarded the International FIABCI Prix d’Excellence Awards twice for its Subang Jaya and UEP Subang Jaya townships. The company bagged its 10th consecutive Gold at the Putra Brand Awards 2019 and its 6th consecutive Top 10 Developers Awards at the BCI Asia 2015.

Sime Darby Property has also been recognised as among the top developers in Malaysia in the annual The Edge Top Property Developers Awards, a recognition which the company consistently receives since 2009.

For more information, log on to https://www.simedarbyproperty.com/

MEDIA CONTACT:

Izzat Alhadjri
Acting Head, Corporate Communications
Sime Darby Property Berhad