Property giant in the making
Sime Darby Property has 16,938 acres with GDV of RM101bil
PETALING JAYA: Sime Darby Property Bhd, which plans to list on Bursa Malaysia by year-end, has 16,938 acres of remaining developable land with a gross development value (GDV) of RM101.1bil in Malaysia.
The property pure play said the current land bank is expected to continue contributing to its sustainable earnings over the next 15 to 20 years.
In its prospectus posted on the Securities Commission’s website, the company said property development contributed 92.1%, 90.1% and 93.3% of its revenue for financial year 2015 (FY15), FY16 and FY17, respectively.
The company also has a footprint in the United Kingdom through its 40% stake in the Battersea Power Station project in southwest London.
Sime Darby Property is also involved in property investment as well as leisure and hospitality.
In the prospectus, the company said it is aiming for a dividend payout of not less than 20% of its net profit from July 1, 2017.
This is in line with its policy of paying dividends out of cash generated from its operations after setting aside necessary funding for capital expenditure and working capital requirements.
“As part of this policy, we target a dividend payout ratio of not less than 20% of our consolidated profit attributable to the owners of our company under MFRS, beginning July 1, 2017,” it said.
However, the company cautioned that its ability to pay dividends or make other distributions to shareholders would depend on certain factors.
These include its level of cash, gearing, return on equity and retained earnings; expected financial performance; as well as existing and future debt obligations.
On its listing reference price per share, which was not revealed, the company said it is determined after taking into consideration the pro forma consolidated net asset per share of RM1.42 as at June 30, 2017, and the market value of its properties.
This gives rise to a revaluation surplus of RM13.83bil on its properties’ net book value.
Moving forward, the company said it planned to focus on its core strengths in township development and increase its exposure in integrated and niche urban developments.
It also aims to optimise and grow its portfolio of recurring income assets and develop its recurring income contribution to 10% of operating profits by 2022.
On overseas expansion, the company plans to leverage on its involvement in the Battersea Power Station project as a platform to consider and evaluate other projects in the UK market.