Sime Darby Property Bhd. · MYX:SIMEPROP
Sime Darby Property Bhd — Q2 2024 Earnings Presentation
35 slides from Sime Darby Property Bhd's earnings presentation, Aug 23, 2024
Slide 1: Q2 FY2024 Financial Results Analyst Briefing Presentation
Q2 FY2024 FINANCIAL RESULTS ANALYST BRIEFING PRESENTATION 23 August 2024 simedarbyproperty.com
Slide 2: Table of Contents
Table of Contents Page 1. H1 FY2024 Key Highlights 4 2. Financial Performance for Q2 FY2024 & H1 FY2024 9 3. Operational Performance for Q2 FY2024 & H1 FY2024 16 4. Battersea Power Station Updates 22 5. Land Bank Management & Activation Plan 26 6. Malaysian Economy & Sector Outlook 28 7. Strategy Mo
Slide 3: Purpose, Vision, Mission and Values
PURPOSE VISION To be a Value Multiplier for Advancing real estate as a force people, businesses, economies for collective progress, in harmony and the planet with the planet's resources MISSION VALUES To develop, own and manage a T - Together we do what's right thriving asset portfolio that E - we l
Slide 4: Key Highlights
Key Highlights First Six Months (H1 FY2024) ended 30 June 2024 The Eighth, Elmina Green 4
Slide 5: H1 FY2024 Financial Highlights
H1 FY2024 Financial Highlights • Strongest H1 performance for Revenue, Operating Profit & Sales since the demerger • Registered 59% Revenue growth to RM2.2 billion YoY • PBT surged 110% to RM446.3 million and PATAMI doubled to RM285.5million • Declared first interim dividend of 1.5 sen Financial Per
Slide 6: H1 FY2024 Operational Highlights
H1 FY2024 Operational Highlights • Highest sales achievement in the first six months at RM2.1b since the demerger • Industrial products maintained as the top sales contributor at 35%, followed by 25% Resi. High-rise, 21% Resi. Landed & 14% Commercial • Launched RM2.3b GDV worth of diversified produc
Slide 7: Q2 FY2024 Corporate Awards & Development Highlights
Q2 FY2024 Corporate Awards & Development Highlights • Ranked 1st for 2 years in a row at the StarProperty Real Estate Awards and notable win at the FIABCI Prix’d Excellence Awards • Maiden Entry into Data Centre business; Secured New Tenancies at Metrohub 2 & Re-inclusion in the FBM Mid 70 Index Awa
Slide 8: Maiden Entry into the Data Centre Segment
Sime Darby Property’s Maiden Entry into the Data Centre Segment • Elmina Business Park chosen as Google’s preferred destination for hyperscale data centre • In line with our SHIFT25 strategy; enhancing the Investment & Asset Management portfolio and long-term recurring income Sime Darby Property to
Slide 9: Financial Performance
Financial Performance Second Quarter (Q2 FY2024) First Six Months (H1 FY2024) Jendela Residences, KLGCC Resort 9
Slide 10: Profit & Loss Performance
Profit & Loss Performance • Revenue grew by 59% YoY to RM2.2b driven by improved operational performance • Registered strong growth in PBT & PATAMI of 110% and 117% to RM446.3m and RM285.5m, respectively RM mil Q2 FY2024 Q1 FY2024 QoQ % H1 FY2024 H1 FY2023 YoY % Revenue 1,203.2 978.7 ▲ 22.9 2,181.9
Slide 11: Revenue & PBT Analysis: Property Development
Revenue & PBT Analysis: Property Development PD segment recorded strong Revenue & PBT growth YoY of 62.4% to RM2.1b and >100% to RM476.0m respectively in H1 FY2024 driven by robust sales performance and improved on-site progress in major townships Property Development QoQ YoY Revenue Revenue 24.0% 6
Slide 12: Revenue & PBT Analysis: Investment & Asset Management
Revenue & PBT Analysis: Investment & Asset Management • Revenue increased by 10.7% YoY to RM 58.1m in H1 FY2024 driven by growth in retail sub-segment (KL East Mall) • IAM segment impacted by higher share of losses from BPS resulting to LBT of RM29.5m in H1 FY2024 Investment & Asset Management QoQ Y
Slide 13: Revenue & PBT Analysis: Leisure
Revenue & PBT Analysis: Leisure • Revenue grew 12% YoY to RM50.5m in H1 FY2024 driven by higher banqueting/F&B and membership activities • Leisure segment reported marginal LBT of RM0.1m; impacted by higher depreciation as part of the ongoing asset review exercise Leisure QoQ YoY Revenue Revenue 26.
Slide 14: Cash and Debt as at 30 June 2024
Cash and Debt as at 30 June 2024 • Well-capitalised for growth – cash balance remained healthy at RM603.7m • Net gearing ratio reduced to 22.3% as at 30 June 2024 Cash & Cash Equivalents (RM mil) External Borrowings (RM mil) Net operating cash inflow: 30 June 2024 31 December 2023 • Positive net cas
Slide 15: Property Development Inventories as at 30 June 2024
Property Development Inventories as at 30 June 2024 • 75.2% or RM2.8b of total stocks (GDV) comprise from New Launches, indicating healthy aging • Completed inventories (% of total inventories) remain low at 4.9% Inventories in Carrying Value Stocks in GDV & Units 30 June 2024 31 December 2023 RM6,6
Slide 16: Operational Performance
Operational Performance Second Quarter (Q2 FY2024) First Six Months (H1 FY2024) Urban Park at Elmina Lakeside Mall, City of Elmina 16
Slide 17: Sales Achieved by Product Type and Location
Sales Achieved by Product Type and Location • Industrial products maintained as the top sales contributor at 35% with contribution of RM749.9m • Contribution from Residential High-rise surpassed Residential Landed at 25% (vs. 21% contribution from Resi. Landed) • Commercial products saw higher contr
Slide 18: Sales Performance Breakdown (by Product Type & Year)
Sales Performance Breakdown (by Product Type & Year) • Achieved sales of RM2.1b in H1 FY2024 (+41% YoY) across a diversified product mix • 69% of sales are from new launch projects amounting to ~RM1.5b Sales Performance Breakdown (by Product Type & Year) H1 FY2024 Sales Achieved RM2,130.4m 9% 6% Com
Slide 19: Unbilled Sales as at 30 June 2024
Unbilled Sales as at 30 June 2024 • Maintained strong unbilled sales of RM3.7b or 1.1x cover ratio • Majority of unbilled sales located within Greater Klang Valley region • Healthy earnings visibility across the next three years • 56% and 44% split between Township & Integrated Development RM3,651.3
Slide 20: Q2 FY2024 Launches – Residential Landed & High rise
Q2 FY2024 Launches – Residential Landed & High rise • RM1,140.0m worth of Residential Landed & High-rise products were launched in Q2 FY2024 • Total GDV launch for Residential Landed & High-rise amounted to RM1,251.3m in H1 FY2024 Q2 FY2024 Launches H1 FY2024 Review Resi. Landed Q2 FY2024 GDV Launch
Slide 21: Q2 FY2024 Launches – Industrial and Commercial
Q2 FY2024 Launches – Industrial and Commercial • RM360.1m worth of Industrial and Commercial products were launched in Q2 FY2024 • Total GDV launch for Industrial and Commercial amounted to RM1,069.0m in H1 FY2024 Q2 FY2024 Launches H1 FY2024 Review Industrial Q2 FY2024 GDV Launched: RM303.4m 862.1m
Slide 22: Battersea Power Station Updates
Battersea Power Station Updates Battersea Power Station 22
Slide 23: Battersea Power Station Updates
Battersea Power Station Updates • Take-up rates across Phase 1, 2, 3A are strong at >90% across commercial components, and close to 100% for residential components • Take-up rate for Koa at Electric Boulevard increased by +9% to 59% as at Q2 FY2024 • Market outlook continue to be challenging, with b
Slide 24: Battersea Power Station Updates
Battersea Power Station Updates • One of a kind, Foster + Partners designed offices at Battersea; Home to Apple’s London Headquarters • Secured SharkNinja in June 2024 as a long-term tenant occupying 32k sq ft, forming their new EMEA HQ • Expected to be significantly occupied by H2 FY2025 Commercial
Slide 25: Land Bank Management & Activation Plan
Land Bank Management & Activation Plan KL East Park 25
Slide 26: Land Bank Management & Activation Update
Land Bank Management & Activation Update • Activated ~265 acres of land in H1 FY2024; approx. ~100 acres from industrial land activation • Total remaining developable GDV of ~RM115b across ~13,100 acres of remaining land Land Activation Remaining Land Bank & GDV (as at June 2024) Non-Core Land Activ
Slide 27: Malaysian Economy & Sector Outlook
Malaysian Economy & Sector Outlook Metrohub 2, E-Metro Logistics Park, Bandar Bukit Raja 27 27
Slide 28: Malaysian Economy & Sector Outlook
Malaysian Economy & Sector Outlook • Malaysia’s GDP grew at 5.9% in Q2 2024, driven by domestic consumption and strong external demand; • Positive upswing in the property sector sentiment and performance, contributed by favourable market conditions & catalytic growth drivers PROPERTY SECTOR MALAYSIA
Slide 29: Moving Forward: Our Strategy
Moving Forward Our Strategy Aerial view of Bukit Cherakah Forest Reserve 29
Slide 30: Our Strategy
Our Strategy Strategy remains intact; focus on execution of our plans towards becoming a Real Estate Company Our Our Purpose Purpose To be a Value Multiplier for people, businesses, SHIFT25 Strategy remains intact and aligned with our Purpose, Vision, Mission, and economies and the planet Values; Ou
Slide 31: H2 FY2024 Launch Plan
H2 FY2024 Launch Plan • Total of ~RM1.6b with 1,855 units to be launched in H2 FY2024 • ~56% from Residential High-rise, ~25% from Industrial and ~13% from Residential Landed in terms of GDV % H2 FY2024 Units to be Launched: 1,855| GDV to be Launched: RM1,566.5m H1 FY2024 Actual Launches H2 FY2024 P
Slide 32: Investment Proposition
Investment Proposition KLGCC Clubhouse 32
Slide 33: Investment Proposition
Investment Proposition • Clarity of purpose, strengthened fundamentals and track record for growth • Towards greater income diversification and value multiplication Strong Financial Solid Balance Sheet Revenue Visibility Stable Return Position H1 FY2024 Sales Committed towards maximising shareholder
Slide 34: Thank you | Q&A
Thank you | Q&A Sime Darby Property Berhad 197301002148 (15631-P) No. 2, Jalan PJU1A/7A Ara Damansara 47301, Petaling Jaya Selangor, Malaysia simedarbyproperty.com
Slide 35: Disclaimer
DISCLAIMER This presentation may contain certain statements that are forward-looking in nature. These statements may contain estimates, assumptions, forecasts or projections made by Sime Darby Property’s management after due inquiry, which are nevertheless subject to various known and unknown risks
Sime Darby Property Berhad — Q2 2024 Earnings Presentation on 6ix