UEM SUNRISE ANNOUNCES REVENUE OF RM1.4 BILLION FOR 1H 2019, UP BY 65% WITH THE PARTIAL SETTLEMENT OF AUSTRALIAN PROJECTS
UEM SUNRISE ANNOUNCES REVENUE OF RM1.4 BILLION FOR 1H 2019, UP BY 65% WITH THE PARTIAL SETTLEMENT OF AUSTRALIAN PROJECTS
• Revenue up by 65% compared to 1H 2018, contributed by Australian projects; • Property development revenue is 95% of total revenue; • Property development earnings contribution improved by 162%; and • Sales contribution from Southern region improved in 1H 2019 compared to 1H 2018 partly due to success of mid-market landed Aspira ParkHomes. Digital Media: UEM Sunrise delivers revenue of RM1,419.8 million for 1H 2019, up 65% compared to 1H 2018, 95% contributed by property development revenue, driven by the completion and settlement of Aurora Melbourne Central’s separable portions (“SP”) SP3 and SP4 as well as Conservatory’s SP1, SP2 and SP3. Sales contribution from Southern region improved in 1H 2019 compared to 1H 2018 partly due to the success of midmarket landed Aspira ParkHomes in Gerbang Nusajaya.
Full Release : KUALA LUMPUR, 28 August 2019 – UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) today announced its financial results for the six months ended 30 June 2019 (“1H 2019”) where total revenue recorded for the period increased to RM1,419.8 million compared to RM861.1 million in the first half of 2018 (“1H 2018”) mainly driven by the completion and settlement of Aurora Melbourne Central’s separable portions (“SP”) SP3 and SP4 and Conservatory’s SP1, SP2 and SP3 in Melbourne, Australia. Excluding a oneoff impairment of RM37.3 million, profit after tax and non-controlling interests stood at RM107.8 million for the period. In absence of significant earnings contribution from land sales in this period compared to 1H 2018 amounting to RM207.3 million, property development earnings contribution improved from RM41.2 million to RM107.8 million.
Property development activities contributed 95% of the Company’s total revenue for the period, with 73% from international projects mainly Aurora Melbourne Central and Conservatory followed by 15% from Central, the likes of Sefina Residences in Mont’Kiara, Symphony Hills in Cyberjaya and Serene Heights Bangi. The remaining 13% was from the Southern region largely from Serimbun, Almas@Puteri Harbour and Aspira LakeHomes, in Iskandar Puteri. As at 30 June 2019, the Company’s unbilled sales stood at RM2.6 billion.
Property development sales for 1H 2019 was RM532.0 million; 52% contributed by the Central region mainly from Symphony Hills, Residensi Astrea in Mont’Kiara and Serene Heights Bangi whilst 44% was from the Southern region largely from Aspira ParkHomes, Almas@Puteri Harbour and Denai Nusantara.
To-date, the Company has launched properties with a total Gross Development Value (“GDV”) of RM249.3 million comprising mid-market double storey terrace homes; Serene Heights Bangi’s Dahlia phase 2 in May 2019 and Aspira ParkHomes’ phases 1 and 2 in January and June 2019, respectively.
Commenting on the financial results, Anwar Syahrin Abdul Ajib, Managing Director/Chief Executive Officer of UEM Sunrise said, “Our revenue this period was largely from our projects in Melbourne, Australia. The successful completion of Aurora Melbourne Central, the 88-storey mixed-use development comprising 959 residential apartments, 252 serviced apartments and office suites, a total GDV of AUD750 million, as well as the positive settlement of its SP3 and SP4, which today stands at 99%, is evidence that the decision to venture into Australia, our maiden international foray, was one of the Company’s best decisions. SP5 is expected to be handed over for settlement in October 2019. For the AUD322 million Conservatory, the settlement rate to-date is 78%. In relation to Mayfair, MEDIA RELEASE 3 we have decided to divest the site to realise its immediate potential value. The proposal has garnered interest from several potential buyers and we plan to complete the transaction before year end. We have made it our top priority to inform our buyers of the decision and will terminate the sale and purchase agreements as well as refund the deposits plus interest accordingly”.
On the Company’s sales status, “Our participation in the Home Ownership Campaign 2019 has been positive for properties like Serene Heights Bangi, Serimbun, Aspira LakeHomes, Aspira ParkHomes. We hope to secure more sales as the campaign has been extended towards year end. Our inventory monetisation efforts are also on track considering that 35% of our sales for the period was from completed properties. In terms of new launches, the bulk of the sales was from Aspira ParkHomes, a gated and guarded urban green living in Gerbang Nusajaya, located near the Gerbang Nusajaya Interchange which connects to the Linkedua Expressway and Tuas, Singapore. The interchange is under construction and slated for completion in October 2020. 155 units were launched, each with an average built-up of 2,000 square feet and priced from RM529,000 per unit. The take-up for phase 1 is 74% to-date while phase 2 already has a take-up of 58%. We are also on track to unveil our prized Kepong Metropolitan development in 4Q 2019 where we plan to launch two residential blocks and retail at an estimated GDV of RM656.0 million”.
In relation to developments in Johor, “In Puteri Harbour, we will be acquiring the retail assets and a theme park building owned by Themed Attractions Resorts & Hotels Sdn Bhd. We plan to improve the assets’ overall design and secure the right tenant mix to increase vibrancy and footfall. This is expected to unlock Puteri Harbour’s development potential and allow us to achieve operational cost savings. The acquisition of the assets will also see us reducing our exposure in Desaru by developing 228 acres of residential lands as opposed MEDIA RELEASE 4 to the original 680 acres. The settlement amount derived from the arrangement will be used to partly set-off the acquisition price of the assets. We target to complete the transaction in the fourth quarter of 2019”.
He added, “Our asset divestment and land portfolio rebalancing strategies are ongoing. We also continue to consolidate our margins through smart spending initiatives, project cost savings and containment of operational overheads. We are also mindful of the challenging market environment and remain prudent in our GDV and sales target of RM1.2 billion each”.
UEM EDGENTA MAINTAINS GROWTH MOMENTUM, DECLARES 6 SEN DIVIDEND
UEM Edgenta Berhad (“UEM Edgenta” or “Company”), the region’s leading Asset Management and Infrastructure Solutions company released their unaudited second quarter results for the financial period ended 30 June 2019 (“Q2 FY2019”) here today.
The Company has declared an interim dividend of 6 sen per share, in respect of H1 FY2019. Together with the earlier declaration of interim dividend of 8 sen per share in respect of H2 FY2018, this represents a 4.5% yield on a rolling-12 months basis, based on the closing share price of RM3.10 as at 23 August 2019.
For H1 FY2019, the Company maintains its growth trajectory with a 10.4% Year-on-Year (“Y-o-Y”) increase in revenue to RM1.11 billion compared to FY2018’s RM1.01 billion. Profit Before Tax (“PBT”) and Net Profit for H1 FY2019 grew by 2.8% and 4.6% to RM92.8 million and RM68.1 million respectively.
UEM Edgenta’s Asset Management segment, which is represented by the Healthcare Support and Property & Facility Solutions divisions, continues to drive growth in H1 FY2019, with Healthcare Support recording 19.7% revenue and 25.9% PBT increases. The revenue growth in Healthcare Support division is mainly attributed to new projects secured from its regional operations in Singapore and Taiwan during this period.
On the back of a challenging first half for the infrastructure sector, the Company’s Infrastructure Services division registered a modest 2.2% increase in revenue for H1 FY2019. UEM Edgenta’s Infrastructure Services division is the leading highway maintenance service provider in Malaysia and is also present in Indonesia where it is currently seeking further long-term growth opportunities. The Asset Consultancy division on the other hand recorded a 1.9% revenue reduction over the same period, mainly due to current projects completing their life cycle.
“Our Healthcare Support division continues to be our primary mover and underpins the Company’s growth. In July 2019, we had secured up to RM540.06 million worth of contracts to provide hospital support services to the Ministry of Health of Singapore, and we will continue to explore new business opportunities in the region”, said Dato’ Azmir Merican, Managing Director/Chief Executive Officer of UEM Edgenta.
The Healthcare Support division is well represented in the region with more than 300 hospitals in Malaysia, Singapore, Taiwan and India.
The first half of FY2019 has seen UEM Edgenta focus its efforts on numerous continuous improvement activities which have included, among others, the launch of mechanised vehicles to modernise its highway maintenance services, and the commencement of its Learning Centre located in Petaling Jaya, Selangor which offers its employees and service partners across its value chain various training & development programmes.
PLUS WINS THE SEDA’S ONE DIAMOND GREEN INITIATIVE AWARD
PLUS Malaysia Berhad (PLUS) Headquarters, Persada PLUS received a One Diamond award from Malaysia Sustainable Energy Development Authority (SEDA)’s 2018 Low Carbon Buildings Assessment recently, making PLUS the first highway concessionaire in the country to receive such award.
The recognition was given to organizations who have successfully implemented electricity consumption exercises via renewable energy and reduced carbon dioxide emission to preserve Environment. All buildings were judged and selected based on their annual carbon dioxide emissions reduction percentage which leads to electricity energy consumption.
In 2018, PLUS had successfully reduced carbon dioxide emission of 6.75 percent, equivalent to 286.78 metric tons of carbon dioxide and an energy savings of 413,228 kWh (kilowatthour) at Persada PLUS through the installation of Variable Speed Drive (VSD) for air conditioning systems, reducing the usage time of air conditioning systems, developing solar photovoltaic technology, implementing de-lamping (reducing/ relocate the use of fluorescent lamps in adequate lighting locations and lighting not required) and installing motion sensor lighting system in toilets and prayer rooms, to name a few.
“This is yet another milestone for PLUS in our efforts to optimize the use of Green Technology in preserving the Environment for our staff and the surrounding communities,” said Datuk Azman Ismail, Managing Director of PLUS.
The PLUS Green RoadMap started when PLUS launched the first solar-powered Electric Vehicle Charging Station in the country at the Ayer Keroh Overhead Bridge Restaurant (Southbound) in December 2018 and transformed the Machap (Northbound) R&R as the first R&R in Malaysia to use photovoltaic solar system in April this year.
“The RoadMap will also see PLUS introducing solar photovoltaic panels as other rest areas such as the Sungai Buloh Overhead Bridge Restaurant, Ayer Keroh Overhead Bridge Restaurant, Dengkil R&R (Both bounds), Gurun R&R (Both bounds), Gunung Semanggol R&R (Southbound), Tapah R&R (Both bounds) and Ayer Keroh R&R (Northbound) within the next 5 years,” Azman added.
UEM EDGENTA PARTNERS WITH COMMON GROUND TO INTRODUCE A MODERN COWORKING EXPERIENCE AT ITS KUALA LUMPUR HEADQUARTERS
UEM Edgenta Berhad (“UEM Edgenta” or “Company”), the region’s leading Asset Management and Infrastructure Solutions company, has collaborated with Common Ground Works Sdn Bhd (“Common Ground”) through its Enterprise Solutions to introduce coworking facilities at its headquarters in Bangsar South, Kuala Lumpur.
Common Ground is Malaysia’s leading brand in providing functional and collaborative coworking facilities, and with the addition of Menara UEM, UEM Edgenta’s Headquarters in Bangsar South City, Kuala Lumpur, it currently operates 13 venues across the Klang Valley and Penang. It also has regional presence in the Philippines and Thailand. The contemporary-styled coworking areas span across one and a half floors at Menara UEM and collectively comprise Common Ground’s biggest Enterprise Solutions deal with a corporate entity in Malaysia. This facility is custom built, designed, and operated by Common Ground exclusively for UEM Edgenta’s employees and the Company’s guests.
According to Managing Director / Chief Executive Officer of UEM Edgenta Berhad, Dato’ Azmir Merican, the Company was keen to initiate this partnership to offer its employees a modern, collaborative, and functional working environment.
“Our goal is to improve organisational excellence and the coworking space model is ideal to spur a new and more progressive culture among our employees. As a Company, we are made up of diverse and agile project teams working daily on innovative and value creation projects. This new feature will increase collaboration among our project teams and is ideal for us to attract the new and younger generation of working professionals, while positively elevating our employer brand in today’s competitive talent market,” he said.
The facility features unique coworking spaces with dedicated desks, meeting rooms, private call booths, lounges, a café, and “The Grounds” – an open and versatile area where UEM Edgenta’s employees can work, socialise, and hold events. These components are signature Common Ground features, where through Common Ground’s Enterprise Solutions, are adjusted and tailored to meet a company’s exact business needs.
Beyond the physical aspects, Common Ground operates the programming of UEM Edgenta’s coworking facilities, along with curating a multitude of business and lifestyle events catered just for its staff. From software to hardware, these solutions help companies save on office space, operation and upfront costs, and provide them with the connectivity and network they need to evolve their business in an ever-changing economy.
“What we are forging with UEM Edgenta epitomises the shifting and emerging dynamics of the business world. Common Ground has been bridging the gap between the corporate landscape and coworking sphere over the recent years because what we are seeing is a genuine improvement in the company’s quality of work, connectivity, and culture. The enterprise solutions we build encompass more than just a workspace or collection of premium amenities – we are genuinely committed to cultivating a synergistic community through the events and partnerships we bring to our enterprise clients,” said Juhn Teo, co-founder of Common Ground
Included in this enterprise deal is access to Common Ground’s Prime Membership feature. The Prime Membership extends access to Common Ground’s exclusive benefits and solutions from its 300+ partners like Amazon Web Services, UOB, SOCAR, Shopee and ClassPass, to name a few. Common Ground Prime Members will also have access to Common Ground’s proprietary network Common Ground app , which provides individuals with the opportunity to connect and collaborate with the community across social and professional spheres (via interest groups, events, forums, feeds, partnerships, etc.).