Image from: Sime Darby Property

Sime Darby Property Berhad (“Sime Darby Property” or “Group”) has reported an impressive RM3.0 billion sales achievement for the full year ended 31 December 2021 (“FY2021”). This figure exceeded the Group’s FY2021 sales target of RM2.4 billion and is a significant 50.0% year-on-year (“YoY”) increase from the previous year.

The Group noted its highest number of new launches with 3,594 units of property worth RM3.7 billion in Gross Development Value (“GDV”), and a notable average take-up rate of 87% for its FY2021 launches. The strong sales achievements in FY2021 underpinned the Group’s financial results improvements against the previous year, with a 7.6% revenue increase to RM2.2 billion, profit before tax (“PBT”) soaring 156.5% to RM268.3 million, and profit after tax and minority interest (“PATAMI”) increasing by 127.3% at RM136.9 million.

Sime Darby Property’s Group Managing Director, Dato’ Azmir Merican said that the Group’s successful sales and financial achievements resulted from the company’s focus on growth and cost discipline throughout FY2021.

Sime Darby Property’s Group Managing Director, Dato’ Azmir Merican. Image from: Sime Darby Property 

“We were mindful of the challenges presented by the COVID-19 pandemic last year and focused on minimising disruptions to our business, allowing customers to continue engaging with our sales and customer service representatives. A fully redesigned homebuying experience complemented our strategic launches across the Group’s master-planned townships, bringing homes, lifestyle and commerce together. We thank our customers and all stakeholders as we look ahead and continue to adapt with market conditions to deliver value through our quality products in FY2022 and beyond,” said Dato’ Azmir.

FY2021 Year-to-Date by Segment

The Property Development segment marked a 7.7% YoY increase with a revenue of RM2,069.7 million, contributing 93.2% to the Group’s total revenue. The segment registered an improved PBT of RM255.3 million compared to FY2020’s loss before tax (“LBT”) of RM354.7 million. Overall, the segment’s achievement is attributed to construction progress and sales of new launches and completed residential and industrial products across its major townships in the Klang Valley and Negeri Sembilan.

For the year under review, the Investment & Asset Management segment contributed RM94.7 million in revenue, marking a 37.2% YoY increase with an improved PBT of RM27.0 million. The growth in revenue is mainly contributed by the KL East Mall. The Leisure segment posted a revenue of RM55.5 million and LBT of RM14.0 million, marking a 50% reduction from the previous year’s loss of RM28.1 million.

Q4 FY2021 vs Q4 FY2020

Sime Darby Property’s revenue for Q4 FY2021 increased by 4.8% to RM739.4 million from the previous year’s RM705.2 million and a healthy PBT of RM120.8 million. This marks a turnaround in profitability compared to LBT of RM38.5 million the previous year. The Group achieved RM1.0 billion sales in Q4 FY2021 and strong progress billings upon resumption of site progress in the Property Development segment.

Q4 FY2021 vs Q3 FY2021

Revenue increased by 90.4% quarter-on-quarter (“QoQ”), reflecting the gradual recovery in all segments post lockdown in the third quarter of the year. All segments recorded profitability in the quarter under review, resulting from the easing of restrictions across property development, retail and leisure activities.

Financial and Operational Achievements

Sime Darby Property’s strong financial position is evidenced by cash balances of RM909.7 million as of 31 December 2021, achieving positive operating cashflows of RM494.3 million. Net gearing ratio remained moderate at 32.0%. The Group’s unbilled sales increased 50.0% YoY to RM2.4 billion, ensuring a healthy income visibility extending beyond the next three years.

The Group’s FY2021 sales achievement is on par with its pre-pandemic accomplishment of RM3.1 billion in FY2019, buoyed by its strengthened marketing & sales capabilities, and supported by the Home Ownership Campaign (“HOC”) as well as low interest rate regime. For FY2021, 44% of sales was generated from residential landed, 25% from residential high-rise, 18% from industrial and the balance from commercial and statutory products, testament to the increasing diversification in product mix. 

Current bookings stood at RM2.1 billion as of 6 February 2022, with completed inventories balances at a low of RM329.6 million as of 31 December 2021. The Group’s new launches in FY2021 garnered an average take-up rate of 87% as of 6 February 2022. Handing Over of Vacant Possession (“HOVP”) was completed in 14 phases for 3,129 units throughout FY2021.

Prospects for FY2022

Sime Darby Property will continue the positive momentum from last year with strategic new launches worth RM2.8 billion in GDV planned for FY2022. In Q1 FY2022, the Group will launch new residential landed products with a GDV worth RM571.0 million in the City of Elmina, Bandar Bukit Raja, Serenia City, Bandar Ainsdale, Nilai Impian and KL East; and high-rise products with a GDV worth RM156.0 million in Putra Heights.

Dato’ Azmir said, “Our strategic initiatives implemented since last year will catalyse our growth into a real estate company. Through our Investment & Asset Management segment, we have introduced the industrial development fund in partnership with LOGOS Property, targeted to make its maiden contribution in the second half of FY2022, as well as focus on expanding our retail and placemaking components in our flagship townships. We are optimistic of the growth opportunities in this sector that will broaden Sime Darby Property’s recurring income streams for the long term.”

(28 February 2022)