KUALA LUMPUR (May 26): Sime Darby Property Bhd (KL:SIMEPROP) posted a 34% rise in net profit for the first quarter thanks to paper gains and stronger recurring income.
Net profit for the quarter ended March 31, 2026 (1QFY2026) came in at RM158.78 million, up from RM118.41 million a year earlier, its Bursa Malaysia filing on Tuesday showed. During the quarter, the property developer booked a fair value gain of RM65.13 million from a completed data centre.
Earnings were also boosted by stronger income from the investment and asset management segment, as well as lower share of losses from joint ventures. Revenue, however, slipped 8.3% year-on-year to RM799.18 million due to lower contributions from property development and leisure segments. No dividend was declared.
Looking ahead, Sime Darby Property flagged risks from geopolitical tensions and cost escalation though demand for residential, industrial and select commercial products is expected to be sustained and support upcoming launches.
"While we remain mindful of geopolitical developments and rising cost pressures, we continue to take a measured and pragmatic approach in navigating potential near-term volatility while positioning the group for long-term growth," said chief executive officer Datuk Seri Azmir Merican in a statement.
The company is planning to launch properties worth RM4.7 billion in gross development value in the remaining months of 2026.
Sime Darby Property sold RM918.9 million worth of properties in 1QFY2026, representing 23% of its full-year target of RM4 billion. As at March 31, 2026, unbilled sales stood at RM4.1 billion, providing earnings visibility for more than three years.
In terms of segment, profit at its property development segment rose 28% due to the data centre fair value gain and project income from Bandar Bukit Raja, City of Elmina, Serenia City, Elmina Business Park and Nilai Impian.
The investment and asset management segment, meanwhile, recorded profit growth of 5.7% thanks to income from KLGCC Mall, higher rental rates, festive season income and expanded logistics assets. Lower joint-venture losses also helped during the quarter.
Losses narrowed at its leisure segment, which includes Kuala Lumpur Golf & Country Club and Bayuemas Sports and Event Complex among other assets, even as revenue fell 7.2% due to lower food and beverage and banqueting income following upgrading works at KLGCC Convention Centre.
Shares of Sime Darby Property fell three sen or 2.05% to close at RM1.43 on Tuesday, giving the group a market capitalisation of RM9.73 billion. The stock is up 2.14% this year.