November 20, KUALA LUMPUR – UEM Sunrise Berhad (UEM Sunrise or the Company) today announced its financial results for the nine months ended 30 September 2017 where total revenue recorded for the period increased to RM2,155.3 million as compared to RM1,216.8 million reported for the corresponding period in 2016, an increase of approximately 77%. Profit after tax and non-controlling interests for the nine months period increased by 158% and stood at RM242.4 million, more than doubled compared to RM94.0 million in the same period last year.
Property development activities contributed 74% of total revenue for the period. The largest contributor was Aurora Melbourne Central in Australia followed by Residensi22 Mont’Kiara in Kuala Lumpur and Conservatory project in Australia. The Central region projects contributed the highest; 38% of property development revenue followed by 36% from international projects and 26% from the Southern region. Revenue from land disposal contributed about 23% from the total revenue mainly from the land disposal in Richmond, Canada which was completed at the end of September 2017. Unrecognised revenue as at 30 September 2017 stood at RM2.9 billion.
Property development sales for the period registered RM671.1 million, 46% of which was contributed by the Southern region mainly from Estuari Gardens, Melia Residences and Almãs in Puteri Harbour, all in Iskandar Puteri, whilst 27% each came from the Central region and international projects. The Central region is mainly from Serene Heights Bangi, Symphony Hills Cyberjaya and Residensi22 Mont’Kiara whereas internationally, largely from its latest launch, Mayfair in Melbourne, a unique luxurious high-rise development designed by the late Dame Zaha Hadid, as well as Conservatory.
To date, the Company has launched projects with a total Gross Development Value (GDV) of approximately RM1.9 billion, exceeding its target for 2017 of RM1.7 billion. Commenting on the financial results, Anwar Syahrin Abdul Ajib, Managing Director/Chief Executive Officer of UEM Sunrise said, “Our financial performance for the past nine months has been on a growth trajectory ever since we released our first quarter results in May 2017 driven by strong construction progress from the international and local projects, inventory monetisation initiatives and the strategic disposal of our land in Richmond, Canada. With the completion of Teega in Puteri Harbour, Arcoris Mont’Kiara, as well as our Bayu Angkasa apartment in Iskandar Puteri which was just recently delivered, we are now slated to deliver Residensi22 Mont’Kiara before year end and Estuari Gardens in Puteri Harbour by the second quarter of 2018”.
“As for our Australian projects, Aurora Melbourne Central and Conservatory are progressing on schedule. We are confident that Aurora Melbourne Central is on track to meet the first delivery of the apartment units in the fourth quarter of 2018 while the second and third delivery are expected to be in the second quarter and fourth quarter of 2019, respectively. Conservatory on the other hand, is expected to be delivered in 2019. We have yet to commence the construction of Mayfair, having only officially launched in September this year but the onsite Display Suite is already opened to the public in Melbourne. Completion is expected in 2021”.
Anwar added, “We are very pleased with the sales contribution that has been coming from our Southern region projects. The encouraging contribution has been consistent since the fourth quarter of 2016 mostly backed by our landed mid-market development Melia Residences and the affordable Denai Nusantara, and renewed interest for our premium Estuari Gardens as reflected from the improved take-up for the product. Similarly, Serene Heights Bangi continue to be among the main sales contributors for the Central region with Dahlia, the latest phase of the township development launched in July 2017, recording an encouraging take-up, inclusive of bookings, exceeding 75% as of to date. We have also secured a money lending license at the end of August for the EASY Own Plan campaign allowing us to launch the differential sum loan scheme under the Easy Financing scheme to boost sales and clear inventories”.
Commenting on the recently launched Solaris Parq Residences, “We are pleased with the performance of our Solaris Parq Residences in Dutamas. Solaris Parq Residences was launched in early October comprising two residential tower blocks, a total of 575 units ranging from 721 to 2,469 square feet built up and priced from RM873,800 per unit. The demand we received has been overwhelming and to date, we have achieved a take-up of close to 80%, including bookings, translating into a potential sales value close to RM600 million. Location and value continue to be amongst the important criteria when buying a property and Solaris Parq Residences has all the right combination. Situated adjacent to Publika, next to an upcoming two-acre urban park, lifestyle amenities within reach plus easy access to notable expressways, its strategic location appeal to both property investors and home buyers”.
On the report raised by Bank Negara in its recent Quarterly Bulletin with regards to the imbalances in the property market, “We recognise the challenges in the property sector as highlighted in the report, and we have and will continue to address those challenges by reviewing and consolidating our products in response to the shift in the market. In addition, we will continue with our asset monetisation strategy through the divestment of our non-core assets to provide us the additional capital resources to secure strategic land banks in the Central region”.
UEM Sunrise also recently sold over 160 acres of its land in Iskandar Puteri to Country View Berhad (Country View). Country View has always been a supportive partner and instrumental in the development of Iskandar Puteri. “We remain committed and will continue to be one of the main property players in Iskandar Malaysia. This timely disposal allows us to explore new opportunities in the Central region. We want to expand our brand and emulate the successes of our projects in Mont’Kiara and Dutamas. The proceeds from this land disposal is expected to be received in the third quarter of 2018,” said Anwar.