UEM Sunrise 4Q net loss widens to RM134m from preceding quarter

KUALA LUMPUR (March 25): UEM Sunrise Bhd saw its net loss for the fourth quarter ended Dec 31, 2020 (4QFY20) widen to RM134.66 million, from RM28.87 million in the preceding quarter, on lower contribution from joint ventures and associates, as well as additional impairment of assets due to Covid-19.

Revenue, however, surged 181% to RM611.64 million, from RM217.44 million in 3QFY20, mainly due to settlement of the sale of the en-bloc serviced apartment to Scape Australia Management Pty Ltd.

In its filing with Bursa Malaysia yesterday, the group added that the higher revenue was also contributed by higher sales and construction activities of local projects.

No dividend was declared for the quarter.

On a year-on-year basis, the group dipped into the red from a net profit of RM125.21 million, while revenue dropped 47.36% from RM1.16 billion in 4QFY19.

For the full financial year, the property developer recorded a net loss of RM277.28 million versus a net profit of RM221.6 million in the previous year. Full-year revenue plunged 60.92% to RM1.14 billion, from RM2.91 billion.

Commenting on the financial results, UEM Sunrise CEO Sufian Abdullah said the impact of the pandemic and the unavoidable impairment provisions affected the group’s profitability.

He said UEM Sunrise plans to launch about RM1.2 billion worth of properties mainly in the central region.

“We will introduce two new mid-market high-rise residences; KAIA Heights in Seri Kembangan at a GDV [gross development value] of RM350 million and a new development with a GDV of RM382 million in Taman Pertama, Cheras.

“We will also launch more double-storey homes in our prized Serene Heights Bangi. Frischia was launched in June 2020. As at to-date, all 47 units have been taken up.

“Then we launched 72 units of Verna in October 2020. As at to-date, 88% has been sold,” he said. 

Meanwhile in the southern region, Sufian said the group plans to introduce more attainable products that will extend its product outreach to the local market.

“This will be in the form of high-rise residences in Senadi Hills at 1,400 square feet. Additionally, affordable landed homes with built-up area of 1,000 square feet and priced at RM150,000 per unit will be launched in Gerbang Nusantara.

Sufian said the group takes comfort that the sale of the serviced apartment in Melbourne to Scape was finally settled in October 2020.

“With regards to Aurora Melbourne Central and Conservatory, we anticipate to complete the full settlement of both projects this year. The settlement of these projects is close to 100%.

“Settlement was affected by the Australian border closure and lockdown in the state of Victoria in the second half of 2020.

“In the interim, we continue to increase our foothold in Melbourne, by acquiring a 1.3-acre land in Collingwood, which is currently in the early stages of design development. With an estimated GDV of A$250 million, we anticipate launching the project in the first half of 2022,” he added.

Shares of UEM Sunrise were down half a sen or 1.1% at 45 sen today, valuing the group at RM2.25 billion. The counter saw 2.3 million shares traded.

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