KUALA LUMPUR (Feb 26): Sime Darby Property Bhd (KL:SIMEPROP) posted a 32.6% decline in net profit for the fourth quarter to RM88.41 million from RM131.26 million a year earlier, amid lower contributions from joint ventures. Earnings per share quarter fell to 1.3 sen from 1.93 sen.

Revenue for the three months ended Dec 31, 2024 (4QFY2024) fell 3.5% year-on-year to RM977.04 million, from RM1.01 billion, according to the group's exchange filing.

Sime Darby Property declared a second interim dividend of 1.5 sen per share, payable on April 23, bringing the total dividend for the year to three sen per share, compared with two sen in FY2023.

The group said its share of results of joint ventures showed a loss of RM22.87 million in 4QFY2024, as against a a profit of RM14.22 million a year earlier.

It also posted other losses of RM12.75 million during the quarter, as opposed to other gains of RM13.63 million in 4QFY2023.

Sime Darby Property said its quarterly earnings were also weighed down by higher tax expenses of RM51.29 million, up 41.1% from RM36.34 million previously, and higher finance costs of RM17.01 million, up 87% from RM9.09 million.

The bottom line was also impacted by higher administrative expenses, which rose 15.3% to RM89.16 million from RM77.32 million in 4QFY2023, and marketing and selling expenses, which increased 9.8% to RM50.16 million from RM45.7 million.

For the full year, Sime Darby Property reported a fresh record high net profit of RM502.2 million, a 23.1% increase from RM407.91 million in FY2023, driven by the property development segment.

Annual revenue also hit a record high of RM4.25 billion, up 23.7% from RM3.44 billion previously, as all business segments reported revenue growth.

This marks the third year of record profitability and revenue. The group posted a full year net profit of RM407.91 million in FY2023 and RM315.84 million in FY2022, while annual revenue stood at RM3.44 billion for FY2023 and RM2.74 billion for FY2022.

The robust financial performance for FY2024 was underpinned by sustained sales momentum and higher site progress within the property development segment, and growing revenue contributions from its investment & asset management (IAM) and leisure segments, said Sime Darby Property in the statement.

The group’s FY2024 property sales exceeded the RM4 billion mark for the first time, hitting RM4.1 billion to surpass its target of RM3.5 billion. During the year, the group launched products worth RM4.2 billion in gross development value (GDV), surpassing its target of RM3.9 billion.

As of Dec 31, 2024, Sime Darby Property’s unbilled sales rose to RM3.7 billion, ensuring strong earnings visibility for the next three years. Unsold GDV for completed inventories remained low at RM208.8 million, while cash balances remained healthy at RM640.4 million.

The group has set a sales target of RM3.6 billion and launches worth RM4 billion for FY2025.

It added that it is poised for continued growth in FY2025, driven by Malaysia’s expanding economy, and sustained momentum within the real estate sector

Sime Darby Property’s share price closed five sen or 3.5% higher at RM1.47, bringing the group a market capitalisation of RM10 billion. The stock has jumped 90% over the past one year.