S P Setia posts RM98.06m second-quarter profit on RM864m sales; UEM Sunrise profit more than doubles

S P Setia's second-quarter net profit holds near RM98m as domestic sales carry the quarter

S P Setia Bhd reported net profit attributable to shareholders of RM98.06 million for the second quarter ended June 30, 2026, broadly stable against RM99.80 million a year earlier, in a Bursa Malaysia filing on Aug 19. Revenue fell 13% to RM821.39 million from RM943.73 million, which the developer attributed mainly to a RM115 million decline in land sale revenue.

The property development segment's profit before tax rose 4% to RM193 million. The higher profit included a one-off reversal of foreseeable-loss provisions following the realisation of low-cost land disposals. For the first half, net profit fell 22.6% to RM129.18 million from RM166.82 million a year earlier.

Sales reached RM864 million for the quarter, with domestic developments contributing RM784 million, or 91%, and the Central and Southern regions together accounting for about 99% of domestic sales. First-half sales stood at RM1.42 billion. The group also reduced borrowings by RM209 million during the half, bringing net gearing to 0.31 times.

UEM Sunrise's second-quarter profit more than doubles to RM46.85m

UEM Sunrise Bhd reported profit attributable to owners of RM46.85 million for the second quarter ended June 30, 2026, more than double the RM22.41 million recorded a year earlier. Revenue rose 36.9% to RM605.71 million from RM442.42 million, supported by higher revenue recognition from property developments and a land divestment.

For the first half, profit attributable to owners rose 47% to RM63 million from RM42.9 million a year earlier, on revenue of RM953.4 million.

Unbilled sales stood at RM2.9 billion as at June 30, providing earnings visibility over the next 48 months, with contributions mainly from Central and Southern region projects.

Sime Darby Property signs SPA to buy Wisma Unirazak for RM160m

Sime Darby Property Bhd said its wholly owned subsidiary, Sime Darby Property (KLGCC Resort) Sdn Bhd, entered into a sale and purchase agreement with Permodalan Nasional Bhd on Aug 19 to acquire Wisma Unirazak along Jalan Tun Razak, Kuala Lumpur, for RM160 million. The SPA followed the subsidiary's acceptance of a binding letter of offer on July 6.

The RM160 million consideration compares with an independent valuation of RM165.75 million dated March 17, 2026. The roughly 47-year-old building has a net lettable area of 110,669 sq ft and was fully occupied, with Universiti Tun Abdul Razak taking up about 92,959 sq ft, or 84%. It generated annual gross property income of RM6.5 million as at Dec 31, 2025. Sime Darby Property plans to redevelop the site into a high-rise serviced apartment development with commercial components aimed at the premium residential segment, with an estimated GDV of RM900 million. The project is targeted for launch in 2028 and completion within five years of launch, with existing tenancies required to end by Oct 31, 2027.

The proposed acquisition was previously disclosed as being subject to approval from the Ministry of Economy or receipt of a letter of no objection, with completion expected in the fourth quarter of 2026. Separately, the proposed redevelopment remains subject to relevant approvals.

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Aug 20's property news was led by second-quarter earnings and a Kuala Lumpur redevelopment acquisition. S P Setia reported net profit of RM98.06 million and RM864 million in sales, while UEM Sunrise's profit attributable to owners more than doubled to RM46.85 million, supported by higher property-development revenue recognition and a land divestment. Sime Darby Property signed an SPA to acquire Wisma Unirazak for RM160 million, with a proposed redevelopment carrying an estimated GDV of RM900 million. Bintai Kinden received a letter of award following a PLUS tender for two Ayer Keroh parcels totalling about 103 acres, while YTL Power and JLand Group are collaborating on a proposed gigawatt-scale data centre campus at Sedenak Tech Park West. Elsewhere, Mah Sing agreed to sell 78.8 acres at Southville City to WG Malaysia X for RM617.9 million, while the Securities Commission granted conditional approval for IOIPG REIT Management's fund-management application.