KUALA LUMPUR: S P Setia Bhd secured total sales of RM3.89bil for the nine months ended Sept 30, 2023, with local projects contributing RM3.37bil or approximately 87% of total sales.

In a statement, the property developer said the remaining RM523mil or approximately 13%, were generated from international sales.

“The central region accounted for 54% of local sales, followed by the Southern region with a 40% sales contribution. The group cleared completed inventories, with RM804mil sold during this period.”

As of Sept 30, 2023, the group secured a total booking of RM450mil.

For the third quarter ended Sept 30, 2023, S P Setia’s net profit stood at RM51.8mil. Revenue grew 25% to RM1.08bil from RM860.9mil quarter-on-quarter.

During the third quarter, S P Setia launched a range of projects, including RM498.7mil of landed properties in the central and southern regions and two-storey commercial retail and office units of the Setia Fontaines City Centre Business Hub in Penang.

“The take-up rate for these new developments has been encouraging, with a 97% occupancy rate observed in the new phase of landed residential units in Bandar Kinrara and approximately 60% of units sold in townships such as Setia Bayuemas and Setia Fontaines.”

The group also expanded internationally by acquiring a prime land site in St Leonards, Sydney, Australia.

“With a land area of 1,374 sq metres, this acquisition marks the company’s first venture into New South Wales.”

S P Setia said it aims to establish a prominent presence in the highly sought-after Sydney property market.

“This strategic move reinforces S P Setia’s commitment to regional growth and contributes to the future revenue pipeline for the group.”

S P Setia also announced the sale of 17.99 acres of land in Setia City, Selangor, as part of its landbank strategy.

“The sale aims to unlock value for the township and aligns with the group’s vision. The land will be sold to KSL Bestari Sdn Bhd for RM228.8mil, boosting the development of Setia City and contributing to the group’s bottom line.

“Proceeds will fund new projects and reduce debt, positively affecting profits, net assets and cash balance.”

S P Setia also said it remains focused on maintaining a sustainable overall performance.

“With 44 ongoing projects and unbilled sales of RM6.76bil as of Sept 30, 2023, the group demonstrates positive earnings visibility in the short to mid-term, despite the challenging economic conditions and market headwinds.

“On the international front, UNO Melbourne (Stage 2) development project in Australia has been completed in September 2023 and is expected to significantly contribute to the final quarter’s results.”

The group added that it remains vigilant in balancing its capital structure and effectively manages a de-gearing program in pursuit of a sustainable overall performance.

“The net gearing ratio at the end of the third quarter of 2023 stood at 0.53 times, reduced from 0.57 times as at Dec 31, 2022.

“Additionally, S P Setia holds an effective remaining land bank of 5,549 acres with an estimated gross development value of RM113.11bil, ensuring a strong foundation for future growth.”

In the same statement, S P Setia president and chief executive officer Datuk Choong Kai Wai said he was pleased with the group’s robust sales performance and progress in expanding its presence locally and internationally.

“This has been possible due to our ability to anticipate market changes, continued brand loyalty among our customers, and our commitment to quality in our projects.

“We remain optimistic about the future of the Malaysian property market and will continue to pursue growth opportunities both in Malaysia and overseas,” he said.

Choong added that S P Setia will remain vigilant in managing its capital structure and effectively pursuing de-gearing initiatives, which will significantly improve the company’s financial flexibility and contribute to its overall performance.”