KUALA LUMPUR, Nov 25 — Sime Darby Property Bhd posted a net loss of RM355.26 million for the third quarter ended Sept 30, 2020 (Q320) against a net profit of RM25.24 million in the same period last year.
Revenue for the quarter under review slid to RM592.63 million from RM850.03 billion a year earlier.
In a filing with Bursa Malaysia today, the company said the Covid-19 pandemic, which led to the implementation of the movement control order (MCO) in various phases, had a significant impact on the group’s results in the current period.
The company said despite its property segment performance had been greatly impacted by the pandemic, the segment registered a revenue of RM1.25 billion for the current period.
“However, the segment recorded a loss of RM414.2 million compared to RM313.5 million profit in the corresponding period of the previous year.
“This is mainly attributable to the group’s share of impairment loss from the Battersea Group amounting to RM337.1 million,” it said.
For its investment and asset management, the group said the segment saw a reduction in revenue to RM48.5 million compared to RM53.9 million in the corresponding period of the previous year.
It said a loss of RM9.1 million was recorded in the current period which was marginally higher than the corresponding period of the previous year.
“The loss was mainly attributable to higher pre-opening expenditure incurred in respect of the KL East Mall in line with an increase in activities as the group progresses towards the targeted opening date.
“In addition, lower rental revenue was generated as a consequence of lower occupancy rate and ancillary revenue, coupled with the rent concessions given by the group to its tenants,” it said.
In its leisure segment, the group registered a revenue of RM54.8 million compared to RM69.1 million in the corresponding period of the previous year, recording a marginally lower loss of RM14.4 million compared to RM14.9 million in the corresponding period of the previous year.
“Improvements were observed in golfing and membership revenue in the periods subsequent to the full lockdown imposed by the government.
“Contribution from events and functions remain low following the Covid-19 pandemic and temporary closure of businesses as a result of the MCO,” it said.
It said the pandemic is expected to have short — and long-term consequences for the entire market and the group, and the final quarter of the year is expected to be challenging.
However, the group continues to enjoy a strong financial position, with a healthy net gearing ratio of 0.26 times, with bookings of RM1.1 billion and unbilled sales of RM1.5 billion as of Sept 30, 2020.
The group is taking a cautiously optimistic view of the challenging period ahead, it added. — Bernama
