Berjaya Property’s ultra-luxury gambit

PETALING JAYA (Feb 27): Berjaya Property Bhd, formerly Berjaya Land Bhd, is repositioning itself towards the ultra-luxury segment, underpinned by confirmed take-up rates at its premium domestic projects and a US$1.12 billion (RM4.35 billion) hospitality development in Japan.

The group’s shift upmarket is reflected in disclosed project data.

Jesselton Courtyard, George Town, Penang

At the opening of its sales gallery on Feb 6, Berjaya Property group CEO Syed Ali Shahul Hameed confirmed that over 50% of the 239 landed units of bungalows, courtyard villas, and courtyard homes had been sold. Courtyard homes are priced from RM6.6 million.

Oaka Residences, Bukit Jalil, Kuala Lumpur

The freehold low-density serviced apartment development has achieved a 70% take-up rate as of late 2025. Pricing is approximately RM880 per sq feet.

Times Square 2 Serviced Residence, KL city centre

Located at Jalan Imbi, the high-rise development has recorded a 75% take-up rate, contributing to quarterly progress billings.

These figures are based on company disclosures as at Friday, Feb 6.

International expansion: Four Seasons Okinawa

Berjaya Property’s flagship overseas development is the Four Seasons Resort & Private Residences Okinawa in Japan.

Disclosed metrics include:

Projected gross development value (GDV): US$1.12 billion

Targeted opening: Mid-2027

Financing: US$70 million Islamic facility secured from EXIM Bank Malaysia

The project represents one of the group’s largest cross-border hospitality developments.

Balance sheet and valuation context

Berjaya Property’s shares closed at RM0.265 on Thursday's (Feb 26). Against its RM0.68 NTA per share, the stock trades at roughly 0.39 times book value.

This represents a significant structural discount. The current NTA reflects a decline from RM0.72 reported in June 2025.

For 2Q FY2026, the group reported a net loss of RM121.76 million. Non-operational factors primarily caused this bottom-line decline. Most notably, a RM60 million unfavourable foreign exchange impact weighed on results.

This impact was largely non-cash and unrealised. Losses from the group's UK-based motor retail unit further impacted the quarter.

"While the quarter faced translation headwinds from a stronger Ringgit, our core property and hospitality engines remain resilient.

"We are cautiously optimistic that our domestic business segments will continue to improve, supported by sustained tourism growth, and resilient consumer spending through the remainder of FY2026," said  Syed Ali Shahul.

Despite these headline figures, the core property division remained resilient. Revenue rose 2.3% year-on-year to RM1.78 billion. This growth was sustained by higher progress billings from domestic residential projects.

With cash and equivalents of approximately RM1.12 billion as at 2Q FY2026, the group maintains liquidity as construction progresses.

REIT optionality: Bridging the valuation gap

While any formal restructuring remains speculative, there is growing market discourse surrounding the potential monetisation of Berjaya Property’s stabilised hospitality and commercial assets through a real estate investment trust (REIT) structure.

Although the company has not announced an official proposal, such a move aligns with a major industry-wide theme for 2026. By transitioning these assets into a REIT, the group could theoretically surface latent value that is currently "trapped" on a balance sheet trading at just 0.39x book value.

What the analysts say

While Berjaya Property executes its specific upmarket strategy, broader research from Malaysia’s top investment houses suggests the timing aligns with industry-wide themes:

On value unlocking: RHB Investment Bank has identified this year as a critical window for "REIT-driven value unlocking", noting that developers with mature hospitality portfolios—much like Berjaya’s—are primary candidates for restructuring. This strategy is increasingly viewed by analysts as a necessary tool to bridge the steep 61% gap between current share prices and the group's tangible asset value.

On the premium shift: Kenanga Investment Bank notes that the "luxury residential" and "niche hospitality" segments remain the most resilient against domestic inflationary pressures. This supports the group's reported 50%–75% take-up rates for its premium Penang and Kuala Lumpur developments.

On currency headwinds: With the ringgit projected to strengthen towards RM3.95/USD by year-end (per Maybank IB), the "unfavourable forex" hit reported in 2Q FY2026 is widely viewed by analysts as a transitory, non-cash event rather than a structural weakness.

These views are drawn from publicly available research and do not constitute investment advice.

Outlook

The reported net loss of RM121.76 million reflects currency translation effects, and non-core business exposures during the quarter. Core property revenue increased year-on-year.

Whether this pivot translates into sustained earnings expansion will depend on continued domestic sales conversion, construction execution of the Okinawa development, and overall cost discipline.

For now, the data indicate a clear move upmarket—supported by disclosed take-up rates, revenue growth, and balance sheet liquidity as the group advances its higher-end positioning.

Editor’s note:

Data source: Based on official Berjaya Property Bhd 2Q FY2026 filings, and market data as of Feb 25, 2026.

No advice: Analyst views (RHB, Maybank, Kenanga) are for informational purposes only; they do not constitute financial advice.

Forward-looking: Project timelines and "REIT optionality" are based on current guidance, and remain subject to market and regulatory risks.

Due diligence: Readers are advised to perform independent research before making investment decisions.

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