UEM Sunrise Q4 net profit soars sixfold

O Attributed to gain from disposal of property in Australia

PETALING JAYA: UEM Sunrise Bhd’s net profit jumped more than six times to RM126.25 million in its fourth quarter ended Dec 31, 2020, over RM19.75 million reported in the same quarter of the previous year, attributed to a gain from its disposal of its St Kilda Road property in Melbourne, Australia.

Revenue for the period rose 54.4% to RM1.16 billion, against RM752.79 million reported previously.

For the full financial year, the group posted a net profit of RM223.8 million, a 20% decline from RM280 million in the previous year, while revenue surged 42.3% to RM2.91 billion from RM2.04 billion.

In 2019, the group launched RM1.2 billion worth of projects, all landed mid-market except for high-rise Residensi AVA in Kiara Bay, Kuala Lumpur.

Sales for the year came in at RM1.13 billion, including the sale of five industrial plots in the Southern Industrial Logistics Cluster in Iskandar Puteri.

The Home Ownership Campaign also contributed 43% of its total sales last year.

Managing director and CEO Anwar Syahrin Abdul Ajib said the group’s performance was largely supported by the strong settlement of Aurora Melbourne Central which accounted for RM1.3 billion of the total revenue, and a settlement rate of 97% to date.

He also pointed out that the group has a pending settlement of A$36 million, in addition to A$125 million from its en bloc disposal of its serviced residential component to Scape Australia Management Pty Ltd, which is expected to be completed in April 2020.

“We also plan to retain the retail component valued tentatively at A$42 million for recurring income purposes. We are confident that we should be able to achieve full settlement for both Aurora Melbourne Central and Conservatory by year end.”

For FY20, the group has targeted a total sales of RM2 billion, which includes the disposal of industrial plots in Southern Industrial Logistics Cluster.

“In view of the balance contribution from the Australian projects coupled with the divestment of non-strategic lands and assets, new project launches and sales target to be achieved, the group is on track to weather the challenging property market environment in the year ahead,” it said.

UEM Sunrise foresees the outlook for the property sector remains challenging given affordability issues, slower economic growth and the overhang of unsold properties.