PETALING JAYA: UEM Sunrise Bhd’s net profit for the second quarter ended June 30, 2015 rose 12.6% to RM83.91mil compared with the same quarter a year ago on lower expenses, higher income from dividend distribution from a subsidiary under creditors’ voluntary liquidation, and recognition of liquidated ascertained damages receivable from a contractor.
However, revenue fell 16.8% to RM372.32mil due to lower contribution from property development. This followed the completion of Summer Suites at the end of the preceding quarter and Imperia, which is nearing completion.
Cumulatively, for the first half, the property developer’s earnings posted a slight improvement to RM137.05mil from RM136.05mil in the previous corresponding period.
“The company recorded higher profit from operations despite lower revenue in the current and cumulative quarter mainly due to improved property development margin and higher other income mainly from dividend distribution from a subsidiary under creditors’ voluntary liquidation and recognition of liquidated ascertained damages from a contractor in the current period,” it said.
However, revenue for the period was 7% lower at RM789.76mil. UEM said property development activities contributed almost 91% of the total revenue for the current period.
“The three major revenue contributors were Teega in Puteri Harbour, Nusajaya; Quintet in Vancouver, Canada and Arcoris Mont’Kiara, Kuala Lumpur in line with higher construction,” it said.
Total property development sales for the period improved to RM600.4mil from RM438.9mil achieved in 2014 driven mainly by international sales from the Aurora Melbourne Central project in Melbourne, Australia which contributed sales of RM267.3mil for the current period.
Its Residensi22 in Mont’ Kiara has recorded over 90% sales to date.
UEM said its unrecognised revenue as at June 30 stood at RM3.8bil.
It will be launching the final phase of industrial lots in the Southern Industrial & Logistics Clusters later this year.
Managing director/chief executive officer Anwar Syahrin Abdul Ajib said that the property market was very challenging at the moment amidst the current global market situation.
However, he added that the company was optimistic that it would continue to have a strong presence in the industry bolstered by the strong sales of our new project launches such as Residensi Sefina Mont’Kiara and Serene Heights in Bangi.
He added that the company will also leverage on Conservatory, its second project in Melbourne, scheduled for launch in October 2015.
It recently bought a 21-storey office tower in Melbourne for RM161mil and plans to convert it into an ultra-luxurious residential development, with a mix of ground floor retail and serviced apartment components.
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