KUALA LUMPUR, May 21 — Sime Darby Property Bhd’s net profit doubled to RM123.58 million in the first quarter ended March 31, 2024 (1Q 2024) from RM60.67 million posted in the same quarter a year ago.

Revenue also rose by 42.8 per cent to RM978.69 million from RM685.33 million previously, with all segments contributing to the group’s revenue growth.

In a filing with Bursa Malaysia, the company said the most significant contributor was the property development segment, with a 45.4 per cent increase, followed by the investment and asset management segment and the leisure segment at 10.7 per cent and 7.6 per cent growth, respectively.

Sime Darby Property said the property development segment contributed 94.6 per cent or RM925.6 million of the total group revenue, with a growth of 45.4 per cent from RM636.8 million in the corresponding period of the previous year.

"The segment’s commendable profit of RM177.0 million reflects an increasingly diversified product mix with higher contributions from industrial products through recent successful launches and robust sales momentum.

"The remarkable segment results in the current quarter were also driven by sales of residential products with increased on-site development activities in Bandar Bukit Raja, Serenia City, Ara Damansara, Putra Heights, SJ7 and Elmina Business Park townships, coupled with contribution from land monetisation in Kedah,” it said.

Besides, the group said that the investment and asset management segment recorded a 10.7 per cent increase in revenue from RM26.2 million to RM29.1 million in the current quarter, mainly driven by the retail sub-segment.

"The growth in retail sub-segment’s revenue was supported by an increase in the occupancy rate from 85 per cent to 90 per cent and rising footfall in KL East Mall,” it said.

In addition, it noted that the leisure segment saw higher revenue contributions from memberships and golfing activities, with revenue growing by 7.6 per cent to RM24.0 million versus RM22.3 million in the corresponding period last year.

In a separate statement, group managing director Datuk Azmir Merican said the group’s 1Q performance has outperformed financial and operational expectations.

"We are actively diversifying our products and income streams. This quarter, our industrial segment emerged as the top contributor to our overall sales performance,” he said.

On outlook, Sime Darby Property said it anticipates a favourable outlook in the financial year 2024, driven by the robust industrial segment and the general improvement in the residential market.

The group is poised for further growth with the launch of two landmark projects, the highly anticipated signature residences, The Ophera at KLGCC Resort, and the Elmina Lakeside Mall, it added. — Bernama