BRDB’s 1Q2010 revenue down by 7%

KUALA LUMPUR: Bandar Raya Developments Bhd (BRDB)’s recorded group revenue of RM189.8 million for 1Q2010, down 7% against RM204.2 million over the same period a year ago, mainly due to lower property sales, it was announced on Bursa Malaysia on May 19.

Revenue in the group’s property division contracted 13% to RM118.5 million from RM136.2 million a year ago owing to fewer properties sold, lower progress income recognition and lower construction contract revenue.

Pre-tax profit dropped by 22% with the completion of One Menerung in 4Q2009, though cushioned by higher progress income recognition from CapSquare Office Tower 2.

However, group pre-tax profit of RM33.3 million in 1Q2010 increased by 33% against RM25.1 million in the immediate preceding quarter (4Q2009) due to the property division achieving higher rental income and incurring lower expenditure following the completion of upgrading works and major refurbishment of Bangsar Shopping Centre (BSC) in the last quarter of 2009.

While the economic situation improves in Asia, BRDB is cautiously optimistic of its performance in the current financial year given its unbilled sales and planned launches of several new projects in the Klang Valley and Johor this year.

Moreover, the group expects greater recurring income contribution from its investment properties with the completion and increasing occupancy of BSC and BRDB Tower.