KUALA LUMPUR (Aug 18): Real estate developer Lagenda Properties Bhd (KL:LAGENDA) has reported a strong second quarter performance, driven by continued construction progress across its affordable township developments, especially in Johor.

The group posted a 25% increase in net profit to RM56.57 million for the three month ended June 30, 2026 (2QFY2026) from RM45.24 million a year earlier, as revenue grew 41% to a record RM336.24 million from RM238.89 million.

Lagenda Properties declared an interim dividend of 3.5 sen per share, compared with three sen in 2QFY2025. The dividend will be paid on Nov 17, with an ex-date of Oct 16.

In its filing with Bursa Malaysia, Lagenda Properties said the stronger performance was mainly due to its core property development segment, which recorded higher revenue recognition as construction progressed across ongoing projects. The group's trading business also performed better, supported by stronger demand arising from construction activities in the southern region.

Lagenda Properties still has upcoming launches within existing townships in Johor, Kedah, Negeri Sembilan, Pahang and Perak. As of the end of June, its unbilled sales reached a record RM1.75 billion, up from RM1.67 billion three months earlier.

"The group will also continue to pursue a disciplined land banking strategy by acquiring strategically located and affordably priced land within high-growth corridors to support its long-term expansion plans," it added. Lagenda Properties currently retains about 3,998 acres of unlaunched land, carrying an estimated remaining gross development value of RM10.28 billion. 

Johor remained the group's largest sales market in the first half of FY2026, accounting for about half of total property sales. The contribution was driven by strong take-up at developments in Kulai and Kota Tinggi, including phases launched as the group expands its presence in the southern state.

For the six-month period, Lagenda Properties' net profit rose 12.2% to RM100.74 million while revenue increased 19% to RM598.34 million.

Shares of Lagenda Properties closed one sen or 0.7% lower at RM1.46 on Tuesday, valuing the group at RM1.22 billion. The counter has gained nearly 16% year to date.