KUALA LUMPUR, Nov 24 ― Sime Darby Property Bhd's net profit jumped more than two fold to RM144.92 million in the third quarter ended September 30, 2023 (3Q FY2023) from RM56.13 million a year ago.

Revenue rose by 52.4 per cent to RM1.05 billion from RM689.30 million recorded in the corresponding quarter of the previous year, said the property developer in a filing with Bursa Malaysia.

"The property development segment saw a strong quarterly improvement with a 56.7 per cent increase in revenue which hit RM1.0 billion, driven by higher sales from residential and industrial products and a rise in on-site progress development,” it said in a statement.

For the cumulative nine-month period ended September 30, 2023 (9M 2023), Sime Darby Property's net profit rose to RM276.66 million from RM212.69 million previously.

Revenue was up by 35.8 per cent to RM2.42 billion from RM1.79 billion in the same period a year ago, mainly contributed by the property development segment which registered a robust 38.7 per cent year-on-year growth, to reach RM2.3 billion compared to RM1.6 billion last year.

It said the segment’s resilient performance was largely due to improved site progress and encouraging sales achieved; further supported by opening unbilled sales of RM3.6 billion compared to RM2.4 billion last year.

"Revenue contribution from the investment and asset management segment is marginally lower at RM78.6 million while the leisure segment continues its moderate growth path with a 6.1 per cent revenue increase to RM66.7 million,” it said.

Sime Darby Property said the group also achieved sales of RM2.5 billion for the period under review and is on track to surpass its FY2023 target of RM2.7 billion.

Group managing director Datuk Azmir Merican said its sales momentum underscores the diverse product offerings priced correctly at the right locations.

"The consistent success of our residential landed, residential high-rise and industrial products highlights the market's positive response to our strategic direction and product developments,” he said.

On prospects, Azmir said the group is positive about the property market which it anticipates to improve in-line with the economy, supported by domestic demand.

He stressed that the group’s robust financial position, RM661.9 million cash reserve and net gearing ratio of 27.4 per cent as of Sept 30, 2023 further solidify its readiness for future endeavours.

"We have an exciting launch pipeline for 4Q 2023 worth about RM791.2 million in gross development value across our townships.

"With the strong momentum to date, we are confident to meet our financial and operational targets for the year,” concluded Azmir. ― Bernama