Sime Darby Property 2Q net profit more than doubles to RM322m

Sime Darby Property Bhd reported a net profit of RM322.04 million for the second quarter ended June 30, 2026, more than double the RM143.54 million a year earlier, driven by improved performance in property development and investment segments. Revenue rose 9.3% year-on-year to RM1.16 billion, and th

PETALING JAYA (Aug 24): Sime Darby Property Bhd’s net profit attributable to shareholders more than doubled to RM322.04 million for the second quarter ended June 30, 2026 (2QFY2026), from RM143.54 million a year earlier. The group said the stronger earnings reflected improved performance in its property development and investment and asset management businesses, fair-value gains and improved contributions from joint ventures.

Revenue rose 9.3% year-on-year to RM1.16 billion from RM1.06 billion, while profit before tax (PBT) increased 82.5% to RM399.29 million from RM218.78 million, according to its unaudited quarterly report filed with Bursa Malaysia on Monday (Aug 24). Earnings per share rose to 4.74 sen from 2.11 sen. Compared with the preceding quarter, revenue increased 45.2% from RM799.2 million, while PBT rose about 69% from RM236.3 million. Net profit attributable to shareholders climbed 102.8% from RM158.78 million.

Revenue from the property development segment increased 46.3% quarter-on-quarter to RM1.06 billion from RM722.5 million, driven by higher revenue recognition across all product categories, particularly industrial, residential high-rise and commercial products. The segment's earnings improved on higher contributions from ongoing developments across key townships, mainly Bandar Bukit Raja, KLGCC Resort, Hamilton Nilai City, SJ7 and SJCC. This was partly offset by a RM36.2 million financial impact related to a High Court order concerning a compulsory land acquisition.

Revenue from the investment and asset management (IAM) segment rose 49.9% quarter-on-quarter to RM82.6 million from RM55.1 million, mainly due to the commencement of lease income from a built-to-lease data centre. The segment also benefited from higher contributions from KLGCC Convention Centre after it reopened following upgrading works. The group incorporated a RM55.3 million gain from changes in the fair value of investment properties into its 2QFY2026 results.

For the first half of FY2026, profit after tax and minority interests (PATAMI) rose 83.6% to RM480.82 million from RM261.95 million a year earlier. Revenue edged up 1.3% to RM1.96 billion, while PBT increased 59.5% to RM635.56 million. Sime Darby Property recorded RM1.8 billion in sales during the first half, with unbilled sales of RM3.8 billion. Bookings stood at RM1 billion as at Aug 9. Barring unforeseen circumstances, the group said it remains on track to achieve its FY2026 sales target of RM4 billion and planned launches with a gross development value of RM4.7 billion.

The company declared a first interim single-tier dividend of 1.7 sen per share for FY2026, compared with 1.5 sen a year earlier. The dividend is payable on Oct 21, with the entitlement date set for Sept 30. Sime Darby Property also announced a dividend policy targeting a payout ratio of 40% to 60% of the group's consolidated profit attributable to owners, excluding extraordinary items. The policy takes effect immediately.