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UEM Sunrise Reports Its Financial Performance For The 6 Months Ended 30 June 2014

KUALA LUMPUR, 25 August 2014 – UEM Sunrise Berhad (“UEM Sunrise”) today announced its financial results for the six months ended 30 June 2014 where total revenue recorded for the period stood at RM849.2 million as compared to RM1.17 billion reported for the corresponding period in 2013, the latter of which included the strategic sale of 43.6 acres of land in Puteri Harbour worth RM400.7 million.

Excluding the land sale, revenue from property development activities increased by 14% from RM689.2 million in 2013 to RM784.0 million for the period under review, largely contributed by progress billings from its projects in Nusajaya namely East Ledang, Imperia, Nusa Bayu and Nusa Idaman as well as those in the Klang Valley, specifically Summer Suites and Symphony Hills. A sizeable contribution was also generated from Quintet, UEM Sunrise’s mixed residential and commercial development located in Richmond, Vancouver, Canada.

In line with the lower revenue recorded, UEM Sunrise’s profit after tax and minority interest (“PATAMI”) for the six month period stood at RM136.0 million compared to RM318.4 million for the year before.

Total property sales for the six months up to 30 June 2014 stood at RM439.0 million while unrecognised revenue as at 30 June 2014 remains strong at RM3.0 billion.

Commenting on UEM Sunrise’s performance, its Executive Director, Dato’ Izzaddin Idris who acknowledges the challenging property market outlook said, “The impact of the cooling measures following the Budget 2014 announcement, concern on potential oversupply in Iskandar Malaysia particularly for high rise units as well as other factors have created uncertainty in the property market, resulting in a slowdown in buying momentum.”

“Sales recorded by UEM Sunrise in the first half of 2014 was significantly lower. We have thus reviewed several development plans to cater to the current market environment and revisited our planned launches and focusing our resources towards providing landed products and mid-market to affordable homes where the demand is still relatively strong.”

For the second half of 2014, UEM Sunrise plans to launch Phase 1 of its mid-market residential development, Serene Heights in Bangi as well as new mid-market offerings in Nusajaya namely Bayu Angkasa in Nusa Bayu and Nusa 18 in Nusa Idaman. Phase 1 of Estuari at Puteri Harbour which mainly consists of landed superlink homes is also targeted for launch by end 2014.

“We are confident that these landed and mid-market products will be well received by the marketplace. In addition, our Australian development in La Trobe Street, Melbourne is also at an advanced stage of approval process. Subject to timely approvals being secured, we intend to bring forward and launch the project this year to take advantage of the prevailing market conditions in Melbourne,” said Dato’ Izzaddin.

He went on to say that in view of the challenging market environment, UEM Sunrise has scaled down its 2014 sales target to RM2.0 billion from the original target of RM3.2 billion announced at the start of the year.

“2014 has proven to be a challenging year thus far for UEM Sunrise but it enables us to consolidate and seize the opportunity to strengthen our core competencies, and processes and to tighten the quality of our delivery so that we are well positioned for the next property upcycle.”