Berjaya Property returns to 4Q profit as property segment improves

PETALING JAYA (Aug 26): Berjaya Property Bhd returned to a profit attributable to owners of the parent in its fourth quarter ended June 30, 2026 (4QFY2026), supported by improved contributions from its property development and investment business, although the group remained loss-making on a consolidated basis.

Profit attributable to owners of the parent was RM1.80 million, compared with a loss of RM15.43 million a year earlier, while revenue rose marginally to RM1.92 billion from RM1.91 billion. Earnings per share improved to 0.04 sen from a loss per share of 0.32 sen previously.

The group recorded a consolidated loss of RM22.74 million for the quarter, compared with RM19.38 million a year earlier. Of the quarterly loss, RM24.54 million was attributable to non-controlling interests, while RM1.80 million was attributable to owners of the parent.

Profit before tax more than tripled to RM48.45 million from RM15.45 million.

In a Bursa Malaysia filing on Wednesday (Aug 26), Berjaya Property — formerly known as Berjaya Land Bhd — said higher quarterly revenue was mainly driven by its property development and investment segment.

Property segment drives quarterly improvement

The improvement was underpinned by progress at Residensi Oak in Bukit Jalil, Pangsapuri Azalea in Subang Heights and Jesselton Courtyard in Jesselton Selatan, Penang, as well as higher revenue from construction activities.

The growth was partly offset by lower revenue from STM Lottery Sdn Bhd, luxury-car retailer H.R. Owen plc and the hotels and resorts segment.

According to the group, STM Lottery recorded lower average sales per draw amid lower accumulated jackpot prizes and one fewer draw, with 40 draws in 4QFY2026 versus 41 a year earlier.

H.R. Owen’s revenue declined as new-car sales were affected by transition gaps between model launches and a challenging economic environment, with the decline compounded in ringgit terms by unfavourable foreign-exchange translation.

The hotels and resorts segment recorded lower occupancy and average room rates, which the group attributed primarily to softer leisure demand arising from the ongoing Middle East crisis.

Berjaya Property said quarterly pre-tax profit was lifted by higher contributions from STM Lottery, property development and investment, and hotels and resorts. These were partly offset by a weaker contribution from H.R. Owen and RM42.87 million in net investment-related expenses.

Great Mall impairment weighs

During the quarter, the group recognised an additional non-cash impairment of RM117.90 million on the balance sale proceeds of the Great Mall Project, citing continued delays in enforcement proceedings.

The impairment attributable to the group, which holds a 51% interest in Berjaya (China) Great Mall Co Ltd, amounted to RM60.13 million.

The group said the impairment was partly offset by RM109.26 million in gains and a forfeited refundable deposit associated with the disposal of foreign ventures.

FY2026 loss widens

For the financial year ended June 30, 2026 (FY2026), Berjaya Property’s loss attributable to owners widened to RM182.88 million from RM100.55 million a year earlier, while revenue fell 2.1% to RM7.42 billion from RM7.58 billion.

The group recorded a consolidated loss of RM133.95 million for FY2026, compared with a profit of RM1.08 million in FY2025. Pre-tax profit fell 65.8% to RM55.43 million from RM162.26 million.

Berjaya Property attributed the weaker full-year performance to lower pre-tax profit from STM Lottery, losses at H.R. Owen amid lower sales and margin pressure, lower contribution from hotels and resorts, unfavourable foreign-currency translation following the strengthening of the ringgit, and RM42.25 million in net investment-related expenses.

The decline was partly cushioned by improved performance from the property development and investment segment. The segment generated RM397.54 million in external revenue and RM37.29 million in segment results for FY2026.

Operating cash flow turns negative

The group used RM570.80 million in net cash for operating activities during FY2026, compared with RM53.81 million generated a year earlier.

It generated RM513.82 million from investing activities, while cash and cash equivalents stood at RM1.07 billion on June 30.

FY2027 outlook

Looking ahead, Berjaya Property said it expects its domestic businesses to benefit from resilient consumer spending and sustained tourism growth.

The group is targeting the fourth quarter of 2027 for the completion and opening of the Four Seasons Resort & Private Residences Okinawa in Japan.

Berjaya Property said it remained cautiously optimistic that its business operations would deliver a satisfactory performance in FY2027, barring unforeseen circumstances.

No dividend was paid for FY2026, while the board did not recommend a dividend for 4QFY2026.

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