This article first appeared in The Edge Malaysia Weekly on August 18, 2025 - August 24, 2025

KERJAYA PROSPEK PROPERTY BHD (KL:KPPROP) has once again proved its ability to deliver high capital efficiency in generating profits from the equity invested by shareholders, despite a challenging property market. For the third consecutive year, the property developer clinched the Highest Return on Equity Over Three Years award in the property sector at The Edge Malaysia Centurion Club Corporate Awards 2025, underlining its disciplined execution and strategic resilience.

The group posted an impressive weighted return on equity (ROE) of 14.3% over the past three financial years, based on its annual ROE of 14.04% in FY2022, 15.34% in FY2023 and 13.9% in FY2024, as calculated using The Edge Malaysia’s methodology.

This level of consistency is notable at a time when many developers have been grappling with margin compression, elevated costs and shifting demand dynamics.

Kerjaya Prospek Property’s net profit has grown steadily over the years, rising from RM63.1 million in FY2021 to RM73.3 million in FY2022, RM91.5 million in FY2023 and RM93.1 million in FY2024. While revenue dipped 9.1% to RM337.1 million in FY2024 from RM370.6 million in FY2023, the group still managed to sustain earnings growth through effective cost optimisation measures.

“Our ability to enhance profitability amid revenue pressures is a testament to our robust cost optimisation initiatives and strategic foresight,” said executive chairman Datin Toh Siew Chuon in the group’s latest annual report. “Given the group’s steady earnings growth, it was only appropriate to reward the shareholders who have been with us throughout our journey.”

The group declared a total dividend of 3.0 sen per share for FY2024, amounting to a payout of RM13.8 million.

The property development segment remained the group’s mainstay, contributing RM286.8 million or 85.1% of total revenue in FY2024. This was a decline from RM323.1 million in FY2023, mainly due to the lower revenue from a completed project, Straits Residences at Seri Tanjung Pinang in Penang, which had already achieved a 99% take-up rate.

Meanwhile, the hospitality segment posted revenue of RM45 million in FY2024, up from RM42.7 million the year before. This improvement was driven by an increase in hosted events and banquets at Swiss-Garden Hotel Melaka.

A key milestone in FY2024 was the completion of its RM1.3 billion Bloomsvale integrated development along Old Klang Road, Kuala Lumpur. The project includes residential towers, office suites, a shopping gallery and the four-star Courtyard by Marriott KL South hotel.

The serviced apartments at Bloomsvale have already hit a 99% take-up rate, and Kerjaya Prospek Property has since relocated its corporate office to the development’s office suites.

The various components of the Bloomsvale development are expected to generate recurring income and strengthen the group’s financial base. “These are expected to significantly boost the group’s recurring income and overall financial results, marking an exciting new chapter in its growth story,” said Toh, noting that the hospitality and retail components would boost long-term earnings visibility.

To maintain its momentum, the group continues to pursue growth opportunities. In May 2024, Kerjaya Prospek Property entered into a 70:30 joint venture with Aspen Vision City Sdn Bhd to develop a mixed-use project on a 221,198 sq ft freehold site in Batu Kawan, Penang.

“This partnership not only strengthens our core property development business but also enhances our future project development pipeline and earnings visibility,” said Toh.

Looking ahead, Kerjaya Prospek Property plans to launch two projects in Sentul and Shah Alam this year, with an estimated combined gross development value (GDV) of RM395 million.

As at end-March 2024, the group’s land bank across Selangor, Kuala Lumpur, Penang and Melaka stood at 61 acres, offering a potential GDV of RM3.8 billion until 2027.

While many in the property development sector remain cautious amid macroeconomic uncertainties, Kerjaya Prospek Property’s sustained ROE performance reflects its prudent management, efficient capital deployment and keen eye for value-accretive projects.

With a diversified portfolio, growing pipeline and focus on sustainable profitability, the group appears well positioned to continue delivering strong value creation for shareholders.

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