KUALA LUMPUR (Nov 11): S P Setia Bhd's (KL:SPSETIA) net profit for the third quarter ended Sept 30, 2026 (3QFY2026) dropped 52.06% to RM32.61 million from RM68.03 million a year ago, due to slower sales and higher operating expenses.

The property developer also attributed the lower performance to the absence of a land sale and higher comparative base arising from more project completions in the corresponding quarter last year.

Quarterly operating profit declined 30.59% year-on-year to RM186.86 million, while selling and marketing expenses jumped 88.33% to RM12.9 million and administrative and general expenses rose 10.87% to RM123.29 million.

Revenue for 3QFY2026 fell 22.9% to RM672.55 million from RM872.26 million a year earlier. 

No dividend was declared for the quarter.

For the nine months of FY2026, S P Setia's net profit fell 31.11% to RM161.8 million from RM234.86 million a year ago, while revenue declined 10.29% to RM2.32 billion from RM2.59 billion.

Despite softer market demand, the group said sales remained resilient, reaching RM2.34 billion during the nine-month period, supported by domestic sales of RM1.91 billion (82%) and international sales of RM430 million (18%).

Improved sales momentum, coupled with a further reduction in borrowings, reflected the group's disciplined approach to growth, said S P Setia president and chief executive officer Datuk Zaini Yusoff in a statement.

The group's year-to-date borrowings decreased by RM402 million, while net gearing improved to 0.30 times from 0.35 times in 3QFY2025, in line with its ongoing deleveraging strategy.

“The groundbreaking of Atlas Melbourne marks another step in expanding our international presence. As we close the financial year, we remain focused on prudent launches, cost discipline and cash flow to deliver sustainable long-term value to our shareholders,” Zaini said.

S P Setia's revenue pipeline from Melbourne projects continues with the breaking of ground on Atlas Melbourne on Sept 17. 

The group said there is strong buyer confidence in the project, as more than 60% of units have been sold ahead of construction.

S P Setia aims to launch Melbourne residential project Sapphire Tower 2 in December 2026, marking the next phase of its Sapphire by the Gardens precinct.

Together with UNO Melbourne, Fulton Lane and Parque Melbourne, these developments are expected to further strengthen the group's presence in Melbourne. 

At Wednesday's close, S P Setia’s share price rose half a sen or 0.83% to 60.5 sen, giving it a market capitalisation of RM3.06 billion.