Selangor Properties Q3 profit jumps 70%

PETALING JAYA: Selangor Properties Bhd (SPB) has registered a 70% growth in net profit to RM33.2mil for the third quarter ended July 31, 2018 (3Q18), compared to the corresponding quarter last year.

This was mainly attributed to an unrealised foreign-exchange (forex) gain of RM16.3mil during the quarter under review, which was much higher than the RM2.9mil in the same quarter last year.

Revenue for the third quarter increased by 23.5% compared to 3Q17 mainly due to higher revenue from Australian operations and higher revenue contribution from property development in Malaysia.

This was despite the ringgit strengthening against the Australian dollar (2018: RM3.06/A$1; 2017: RM3.41/A$1).

In a Bursa Malaysia filing, SPB said it was increasing marketing efforts to drive sales of units in AIRA Residence project.

“As construction progress on the site advances, higher progress billings to customers will be generated.

“The target launch of Bukit Permata Phase 4 in the fourth quarter is expected to generate more sales, which will add to the group’s revenue.

“Until the government’s freeze on residential developments priced above RM1mil has been revisited and subject to market conditions, the group will re-assess the feasibility of the development of the Wisma Damansara site,” said SPB.

SPB’s investment properties in Malaysia and Australia are expected to maintain their present occupancy and rental rates.

In view of the subdued property markets in both countries, it is not expected that there will be any significant change in fair values of the properties for the year.

Apart from that, overseas investments which are held in foreign currencies will continue to be affected by forex fluctuations.

Barring any unforeseen circumstances and subject to forex fluctuations and property revaluation, SPB expects its operations in all business segments to remain stable for the current financial year.