Sime Darby Property's 2Q Net Profit Slips To RM143.54 Mln

KUALA LUMPUR, Aug 21 (Bernama) -- Sime Darby Property Bhd’s (SDP) net profit dipped to RM143.54 million in the second quarter ended June 30, 2025 (2Q 2025) from RM161.96 million in the same period a year ago.

Revenue for the quarter under review eased RM1.06 billion from RM1.20 billion previously, mainly driven by a lower contribution from the property development segment, it said in a Bursa Malaysia filing today.

“For the first half of 2025 (IH 2025), the group recorded revenue of RM1.93 billion, representing a decrease of 11.4 per cent compared to RM2.18 billion in the corresponding period in prior year, primarily attributed by a 13 per cent decrease in the property development segment,” it said.

SDP said the segment’s revenue dropped to RM1.80 billion, compared to RM2.07 billion previously. This was due to lower financial progress from industrial products, timing of revenue recognition and projects in the initial construction stage.

“The property development segment remained the group’s main revenue driver, contributing 93.3 per cent of its total revenue. In contrast, 1H 2024 benefited from higher sales and financial progress from industrial products and non-core land sales.

Correspondingly, segmental profit also fell to RM377.1 million from RM480.8 million in the same period last year,” said SDP.

In a separate statement, SDP’s group managing director and chief executive officer Datuk Seri Azmir Merican said 1H 2025 results demonstrated the strength of its sales momentum and diversified portfolio.

“We are pleased with the growth in our investment and asset management (IAM) segment, driven by strong retail performance,” he said.

The group’s IAM segment recorded a 34 per cent year-on-year (y-o-y) revenue growth to RM78 million.

This was due to the retail sub-segment’s strong performance led by KL East Mall and Elmina Lakeside Mall maintaining near-full occupancy, solid visitor footfall, and positive rental reversions, as well as a lower share of losses from joint ventures.

On prospects, Azmir said the property developer remains focused on delivering sustained growth and multiplying long-term value.

“As we move into 2H 2025, we are on track to meet our target for the year, supported by steady demand across key sectors, including industrial and residential.

With healthy unbilled sales and a strong pipeline, we are well-positioned to navigate market uncertainties and deliver sustainable growth” he added.

The group declared its first dividend of 1.5 sen per share for the financial year ending Dec 31, 2025, amounting to a total payout of RM102 million.

-- BERNAMA