Surpassed RM2.0 billion Sales Target by 18%
KUALA LUMPUR, 25 February 2016 – UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) today announced its financial results for the financial year ended 31 December 2015 (“FY2015”) where total revenue recorded for the period stood at RM1,749.9 million compared to RM2,661.7 million reported for the financial year ended 31 December 2014 (“FY2014”), a decrease of approximately 34% mainly due to a significant reduction in land sale revenue from RM882.0 million in FY2014 to only RM24.0 million in FY2015. Profit After Tax and Non-Controlling Interest stood at RM257.2 million in FY2015 compared to RM479.9 million in FY2014, a decrease of approximately 46%, in line with the lower revenue recorded in FY2015.
Revenue from property development activities stood at RM1,617.9 million, or 92% of total revenue for FY2015 compared to RM1,670.6 million, or 63% of total revenue in FY2014. The Company’s projects in the Southern and Central Regions of Malaysia contributed 45% and 38% of property development revenue respectively while the remaining 17% was contributed by the Company’s international projects.
Total property development sales for the period under review was RM2.37 billion, 18% higher than the Company’s sales target of RM2.00 billion, driven mainly from international projects which accounted for approximately 59% of total sales led by the Company’s Australian projects, Aurora Melbourne Central and Conservatory Melbourne which was launched in October 2015. Projects in the Central region of Malaysia contributed 28% of total sales, coming mainly from Residensi Sefina Mont’Kiara, a beach-themed low density high rise residential development launched in August 2015, followed by Residensi22 Mont’Kiara, Symphony Hills in Cyberjaya and
Serene Heights Bangi, a mid-market integrated township development in Selangor which was launched in late June 2015. This is despite the relatively weaker property market sentiments in Malaysia during the period under review.
However, the Company’s projects in Iskandar Puteri (“formerly known as Nusajaya”), the Southern Region of Malaysia remained affected by the soft market sentiment for Iskandar Malaysia and only contributed 12% of total sales.
Unrecognised revenue as at 31 December 2015 stood at RM4.65 billion compared to RM3.92 billion as at 31 December 2014. UEM Sunrise is proposing a first and final single tier dividend of 1.6 sen per ordinary share of RM0.50 each for the financial year ended 31 December 2015 compared to 3.0 sen per ordinary share in FY2014.
Commenting on the results, Anwar Syahrin Abdul Ajib, Managing Director/Chief Executive Officer of UEM Sunrise said that, “We did not see significant increase in property sales despite the weakening of the Ringgit, especially among our foreign buyers in the Southern Region. We believe however that once the Ringgit stabilises, confidence may be restored in the market and buyers may be encouraged to purchase more properties”.
On his view of the Company’s performance in the Southern Region, “We are very mindful of the challenging market sentiments there, particularly for high end products and we have refocused our efforts towards delivering more landed mid-market and affordable products. We have begun this initiative through our collaboration with a private developer, Denia Development Sdn Bhd, which has at end December 2015 delivered approximately 3,830 units of affordable homes and shop offices in Taman Nusantara. 351 units of landed double storey terrace houses and shop
offices in Bayu Nusantara launched in March 2014 are expected to be delivered to our buyers by the middle of this year. In addition, we plan to launch Denai Nusantara, our latest high rise affordable home development in line with the Rumah Mampu Milik Johor initiative by the Johor State Government totalling 1,217 units towards the end of first quarter 2016. All these are located in Iskandar Puteri. We also plan to unveil Melia Residences, a new landed double storey terraced mid-market development in Gerbang Nusajaya in the first half of 2016. We are confident that the pricing of this new development will be well-received by the market at large.”
Anwar noted that in 2015, the market in the Central Region was more resilient, “Demand for high rise and landed residential in established areas remain healthy. Our two new developments launched in 2015, Residensi Sefina Mont’Kiara and Serene Heights Bangi received overwhelming response by the market as evidenced by our Acacia, Phase 1A2 of Serene Heights Bangi, priced from RM550,800 per unit, where almost all of the 121 units offered have been taken up. We plan to build more mid-market and Rumah Selangorku affordable homes in the Central region as well especially through our recent collaboration with WCT Land Sdn Bhd to develop 608.6 acres in Serendah, which is targeted for launching in 2017. Within the next 18 months, we hope to launch another Residensi product in Mont’Kiara as demand remains strong in that location”.
On the international front, “The second and final phase of Quintet, our maiden project in Canada, was successfully delivered to our buyers towards the end of 2015 and we are now accelerating the planning for our second project there in Alderbridge. We are also proud of the success of the two projects that we have launched in Melbourne, Australia. The residential components for Aurora Melbourne Central, our maiden Australian project, was sold out and in December 2015, we signed an agreement to sell the entire Serviced Apartment component of Aurora Melbourne Central to Ascendas Hospitality Trust for a total value of AUD120 million. Conservatory, our
second project in Melbourne, which we launched in October 2015 has also been very well received by the market. This has certainly helped us cushion the impact of the weak Malaysian property sentiment and we are confident that the third project which we intend to launch in Melbourne towards the end of 2016, located on a parcel acquired in St Kilda Road in August last year, will also meet with similar success.”
For 2016, UEM Sunrise is targeting to launch new projects with a combined Gross Development Value of RM1.2 billion with a total sales target of RM1.5 billion.