KUALA LUMPUR (Aug 24): Sime Darby Property Bhd (KL:SIMEPROP) raised its dividend policy as earnings at the real estate developer more than doubled in the second quarter.
The company targets to distribute 40%-60% of its net profit, excluding extraordinary items, as dividends to shareholders effective immediately, the company said in a statement. The previous policy was to pay out 20% of profit after tax and minority interest.
“The dividend policy reflects the group's shift towards a more balanced earnings profile, with a growing contribution from recurring income,” Sime Darby Property said.
Net profit for the three months ended June 30, 2026 (2QFY2026) was RM322 million compared to RM143.5 million in the same quarter a year earlier, boosted by higher share of results from joint ventures following the reversal of provisions.
Revenue for the quarter rose 9.3% year-on-year to RM1.16 billion, driven by higher income from its mainstay property development business as well as investment and asset management segments following the commencement of lease income from the built-to-lease data centre.
A first interim single-tier dividend of 1.70 sen per share was declared, payable on Oct 21. The company usually announces its dividends twice a year.
“Our first-half performance reflects the resilience of our diversified portfolio and strength of our integrated business model,” Sime Darby Property CEO Datuk Seri Azmir Merican said in a statement.
Looking ahead, Sime Darby Property said it remains focused on achieving its targets for the remainder of the year through disciplined execution, sustained demand across key segments and continued expansion of its recurring income base.
In the launch pipeline are projects worth about RM4.7 billion in gross development value across domestic and international markets, which Sime Darby Property expects to support growth momentum in the second half of the year.
For the first six months, net profit jumped more than 83% to RM480.8 million from RM262 million though revenue was largely flat on a year-on-year basis at RM1.96 billion.
Sales totalled RM1.8 billion in the first half of 2026. Industrial products accounted for the largest share at 49%, followed by landed residential properties at 25%, high-rise residential properties at 18% and commercial properties at 7%.
Unbilled sales totalled RM3.8 billion as at June 30, 2026.
Sime Darby Property shares were unchanged at RM1.32 on Monday, giving the group a market capitalisation of RM8.98 billion ahead of the results.