KUALA LUMPUR (Nov 25): Property developer S P Setia Bhd (KL:SPSETIA) reported a 93% year-on-year surge in its third-quarter net profit, driven by higher profit from land sales which offset losses from the Battersea Power Station project and lower contributions from its Australian operations.

The group made a net profit of RM100.02 million for the third quarter ended Sept 30, 2024 (3QFY2024), up from RM51.82 million in 3QFY2023, while revenue rose 16.62% to RM1.26 billion from RM1.08 billion. No dividend was declared.

For the first nine months ended Sept 30, 2024 (9MFY2024), net profit more than tripled to RM472.38 million from RM150.34 million a year earlier, as revenue surged 41.46% to RM4.23 billion from RM2.99 billion. The growth was driven by land sales in Glengowrie in Semenyih, Taman Pelangi Indah in Johor Bahru, and Setia Alam in Selangor.

Additionally, higher revenue from both the central and southern regions of Peninsular Malaysia contributed to the group’s improved performance for 9MFY2024, which was partly offset by a higher share of losses from a joint venture (which included a negative accounting impact from International Financial Reporting Standard 17), S P Setia said in a filing with the stock exchange on Monday.

“We are pleased with our financial performance to date, driven by strategic initiatives and strong market demand in the southern and central regions, coupled with the right cost management strategies resulting in sustained profitability for S P Setia,” said president and chief executive officer Datuk Choong Kai Wai in a statement.

S P Setia reported total sales of RM3.2 billion for 9MFY2024, of which 94% came from the southern and central regions of the peninsula. It had also locked in RM556 million of sales in the pipeline as of end-September. Of this, the property development segment contributed RM477 million, while the Setia Alaman industrial segment accounted for RM79 million.

The group has 42 ongoing projects, with a land bank of 5,581 acres (2,259 hectares) valued at a gross development value (GDV) of RM127.71 billion. Unbilled sales totalled RM3.5 billion.

S P Setia plans to launch about RM1.97 billion worth of residential, commercial, and industrial properties for the remainder of the year, with over 62% of these launches concentrated in the central region of the peninsula.

S P Setia also said its next major investment in Kuala Lumpur is Phase 1 of the Setia Federal Hill project. Developed in partnership with Mitsui Fudosan, this project features Parkside Residences, with an estimated GDV of RM1.4 billion. The official launch is scheduled for early 2025, it said.

On the international front, S P Setia said it had launched its latest Australian project, Atlas Melbourne, a 73-storey mixed development located at 383 La Trobe Street in Melbourne’s central business district. With an estimated GDV of RM2.7 billion, the project will be developed in phases. Construction for Phase 1 of the project is set to start in the first half of 2026, with completion targeted for 2028. The subsequent phases are expected to be completed by mid-2029, it added.

Shares of S P Setia closed up one sen or 0.72% at RM1.39 on Monday, giving the group a market capitalisation of RM6.9 billion. Year to date, the counter has risen over 73%.