KUALA LUMPUR: Sime Darby Property Bhd's net profit more than doubled to RM161.96 million in the second quarter ended June 30, 2024 (2Q24) from RM71.07 million a year ago, on the back of higher revenue.
The group's quarterly revenue jumped to RM1.2 billion from RM688.92 million previously.
As a result, it registered a higher earnings per share of 2.40 sen against 1.00 sen in 2Q23.
Meanwhile, Sime Darby Property's cumulative six-month (1H24) net profit climbed to RM285.54 million from RM131.74 million a year ago, while revenue rose to RM2.18 billion from RM1.37 billion.
The strong financial performance was attributed to the sustained sales momentum across a diversified product mix and improved site progress within the property development segment.
Sime Darby Property declared its first dividend of 1.5 sen per share for FY24, amounting to a payout of RM102 million.
The group also achieved its highest half-year sales performance, reaching RM2.1 billion for 1H24, marking a 40 per cent increase from RM1.5 billion in the same period last year.
Sime Darby Property's group managing director, Datuk Seri Azmir Merican, said the group's first half results have been exceptional, demonstrating its capacity to strategically align with market demands and enhance its operational efficiencies.
He added that the notable contributions from the group's industrial, residential high-rise, and residential landed segments have been instrumental in reaching 60 per cent of their RM3.5 billion sales target, underscoring the effectiveness of diversifying the group's product mix.
"Building on this momentum, the group announced plans in May 2024 to construct Google's hyperscale data centre, marking its entry into the data centre asset class.
"This move aligns with the group's SHIFT25 strategy to boost recurring income.
"The 20-year lease, valued at RM2 billion with options for renewal, not only strengthens the group's market presence but also taps into new opportunities in the rapidly expanding data centre sector," he said in a statement today.
Azmir noted that this approach has not only marked this period as one of its strongest since the demerger but also solidifies the group's commitment to its SHIFT25 targets.
Looking ahead, Sime Darby Property anticipates sustained momentum in 2HFY24, driven by healthy demand and rising sales volume.
Azmir said the group's ongoing transformation into a leading real estate company remains firmly on track.
He noted that the group's strong first half performance indicates that its strategic initiatives are well-positioned.
"We are on course to achieve our targets and create value for all stakeholders by seizing current market opportunities while ensuring long-term growth and sustainability," he added.
As of June 30, 2024, the group maintains healthy unbilled sales of RM3.7 billion, ensuring revenue stability for the next three years.
Cash balances remain healthy at RM603.7 million, coupled with a net gearing ratio of 22.3 per cent.