KUALA LUMPUR, 21 May 2015 – Following its Seventh Annual General Meeting (“7th AGM”) today, UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) remains optimistic going forward given the current challenging market conditions of the property sector as it plans to weather it out by leveraging on the diverse mix of product offerings to be launched by the Company in 2015.
For financial year ended 31 December 2014 (“FY2014”), total revenue increased by 10% to RM2.7 billion compared to the financial year ended 31 December 2013 (“FY2013”) revenue of RM2.4 billion, while profit after tax was recorded at RM479.8 million.
Meanwhile, the Company’s property development sales recorded 20% higher than the Company’s revised sales target of RM2 billion which was announced in August 2014. This was driven by the stellar performance of Aurora Melbourne Central our maiden project in Melbourne, Australia; Residensi22 Mont’Kiara; and Symphony Hills in Cyberjaya.
Anwar Syahrin Abdul Ajib, Managing Director/Chief Executive Officer of UEM Sunrise said he was pleased with the results despite the cooling measures, tightening credit and rising costs. He attributed the 10% growth to progress made from ongoing projects in the Southern and Central Regions as well as International segment.
“Revenue growth was also supported by our strategic land sales to Scope Energy Sdn Bhd, the 40:60 joint venture company between UEM Sunrise and KLK Land Sdn Bhd as well as land sales to FASTrack Iskandar Sdn Bhd, both in Gerbang Nusajaya,” Anwar added.
Unrecognised revenue and unbilled sales as at 31 December 2014 stand at RM3.9 billion and RM5.3 billion respectively which will be recognised over the next two to three years as physical progress of development projects continues, ensuring continuous contribution to its revenue and earnings for the next few years.
UEM Sunrise’s 7th AGM marked the Company’s third consecutive dividend pay-out since its listing in 2008. For FY2014, UEM Sunrise has sought shareholders’ approval for the Company’s first and final single tier dividend of 3.0 sen per ordinary share of 50 sen each. This is one out of the 11 resolutions put into motion during its 7th AGM.
Going forward in 2015, UEM Sunrise has a myriad of new properties that the Company is looking forward to announce that will further sustain the Company’s performance throughout 2015.
“In the Central Region, we have previewed Residensi Sefina Mont’Kiara and will be launching Artisan Hills, a premier gated and guarded high-end residential development in Seri Kembangan and Phase 1 of Serene Heights in Bangi. In the Southern Region, we are targeting to launch Estuari, our first landed project in Puteri Harbour and landed residential project in Gerbang Nusajaya, the second phase of Nusajaya development in Johor,” he explained.
Aligned with the Government’s initiative to supply the market with affordable homes, UEM Sunrise plans to launch five 12-storey blocks with 1,109 units of 1,000 sq ft apartments and 108 single storey shop lots in the first half of this year. As at end 2014, the Company, in collaboration with Denia Development Sdn Bhd delivered a total of 3,736 affordable houses and shop offices in Taman Nusantara with another 1,436 currently under construction.
“Our diverse project mix will ensure that we can weather the challenging conditions in Malaysia and capitalise on opportunities in international markets. Within Malaysia, we have products across market segments, from affordable to premium. We believe that there are market demands and by responding to it with the right products, to cater to the aspirational needs of our potential buyers, then the market will reward us.
“At the same time, we expect continued income from our overseas developments will cushion any downside in revenue from our local properties. Aurora Melbourne Central has the potential to bolster our earnings for the next three to five years as we have only launched the residential component and still have the retail, commercial and serviced apartment/hotel in the pipeline with an estimated GDV close to AUD180 million which we are most likely to launch before year end. In addition to that we will also launch The Conservatory, a high rise residential mixed development at Melbourne’s Mackenzie Street with an estimated GDV of AUD200.6 million,” he said.
Anwar concluded by stating that UEM Sunrise will continuously meet the market’s demand and expands its portfolio of innovative products that cater to all segments.
“Leveraging on our development expertise and insights into the market needs and expectations, we will continue to focus on enhancing lives to the best of our ability.”