KUALA LUMPUR (May 29): Property developer Sime Darby Property Bhd (KL:SIMEPROP) remains optimistic about its outlook for 2025, buoyed by record-high unbilled sales of RM3.84 billion, despite ongoing tariff uncertainty.

“Looking ahead to the end of 2025 and into 2026, the key concern is whether future launches and bank lending will be affected,” said its group managing director and chief executive officer Datuk Seri Azmir Merican during a virtual press conference on Thursday.

However, he noted that guidance from Bank Negara Malaysia indicates the domestic economy remains on a stable trajectory.

“As a property developer, our success is closely tied to the overall economic performance, as a strong economy fosters confidence. When confidence is high, people are more inclined to invest in property, making a positive outlook essential for sustaining market demand.”

Azmir highlighted that the group recorded RM927.5 million in sales for the first quarter of 2025, representing 26% of its full-year sales target of RM3.6 billion. Unbilled sales have also reached a record high of RM3.84 billion, with a cover ratio of one time, ensuring strong earnings visibility for the next three years.

In the first quarter of 2025, industrial properties contributed the largest share of sales at 50%, followed by residential high-rise units at 27%, landed homes at 14%, and commercial properties at 7%. The distribution reflects the group’s planned launch strategy.

Azmir anticipates residential sales to pick up in the second half of the year, in line with the group’s scheduled launches.

For the remainder of 2025, Sime Darby Property plans to launch RM3.3 billion in gross development value across 3,044 units. Residential projects, including both landed and high-rise properties, are set to account for RM1.94 billion of new launches, while industrial projects will contribute RM1 billion and commercial properties RM351 million.

On the Battersea Power Station project in the UK — a joint venture between Sime Darby Bhd (KL:SIME), S P Setia Bhd (KL:SPSETIA) and the Employees Provident Fund — Azmir said footfall has improved by 8% year-on-year.

Meanwhile, the take-up rate for Phase 3B of the project has risen to 74% from 68% at the end of 2024, while commercial leasing remains at 45%, with strategies in place to secure long-term tenants.

Additionally, it has secured planning approval for the Phase 3C development’s two residential buildings, one of which will feature senior living apartments, with anticipated completion by 2029.

Regarding the expansion of recurring income, Sime Darby Property has set a target of achieving 10% to 15% of total sales by the end of 2026, with a high watermark target of 30% by 2027 or 2028.

These goals will be strengthened by its industrial properties, particularly data centre leasing operations, the logistics park, and warehouses, alongside improved retail mall performance. This includes the upcoming KLGCC Mall, scheduled to open in the second half of the year, as well as KL East Mall and Elmina Lakeside Mall.

The group’s investment and asset management division currently oversees 33 assets, including retail, office and industrial properties across the Klang Valley and the UK.

Sime Darby Property shares closed down one sen or 0.7% at RM1.41 on Thursday, valuing the group at RM9.6 billion. The stock has fallen 13.5% year to date.

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