Sime Darby Property 1H 2026 AUM Reaches RM5 Bln
KUALA LUMPUR, Aug 24 (Bernama) -- Sime Darby Property Bhd’s assets under management (AUM) have grown to RM5 billion in the first half of 2026 (1H 2026) as the property developer continues to scale its recurring income portfolio while maintaining a resilient balance sheet.
Group managing director and chief executive officer Datuk Seri Azmir Merican said funds under management currently stood at RM2.25 billion, and gearing remained below 0.5 times despite the group’s aggressive expansion in its asset management business.
“Our AUM has grown to RM5 billion, and funds under management are now RM2.25 billion.
“Our balance sheet is resilient even though we have been aggressive in growing our asset management business,” he said during the Sime Darby Property Highlights 1H 2026 performance briefing today.
Azmir said the group expects a busy 2H 2026, with RM1.2 billion worth of township developments, landed homes and industrial products to be launched, and it will maintain its full-year sales target of RM4 billion.
He said the group will also launch The Oram, its maiden project in Melbourne, Australia, in the coming months and will contribute to sales for the remainder of the year.
“Industrial development is expected to remain a major contributor, with its contribution projected to reach about 41 per cent. At the same time, the group will increase the proportion of residential, landed and high-rise launches in 2H 2026,” he said.
Meanwhile, Azmir said the group remains committed to its target of having recurring income account for around 30 per cent of group earnings, as its recurring income is becoming an increasingly larger contributor to the group’s profitability.
“We want to hit 30 per cent, but that doesn’t mean we are not growing the property development business. So, the target is to continue and target 30 per cent. It’s a target that we know we have, an internal number we want to hit,” he said.
Azmir said the growth in recurring income would provide greater earnings predictability and help mitigate potential volatility in the property development business.
“By having recurring income, we can mitigate these issues. And as recurring income grows bigger, not only do we mitigate (issues), but it also allows for a bigger portion of earnings to be predictable.
“Therefore, this enhances our ability to allow for a better return to shareholders,” he added.
Regarding the Johor-Singapore Special Economic Zone (JS-SEZ), Azmir said the group sees the corridor as an opportunity for longer-term growth, although it has yet to undertake significant expansion in Johor.
“We think we should definitely look at this opportunity. It is an exciting opportunity. Of course, we have seen many of our peers doing well,” he said.
He said the group was looking to re-plan its business in Johor, with its presence in Kulai providing a strategic foothold to participate in the region’s longer-term growth.
“We’re in for the long term. I think that is why we landed in Kulai,” he said.
Sime Darby Property’s net profit rose to RM322.03 million in the second quarter ended June 30, 2026, from RM143.54 million in the same quarter a year ago.
In a filing with Bursa Malaysia today, the property developer said the higher net profit was mainly driven by stronger underlying performance in the property development and investment and asset management segments, supported by fair value gains on investment properties recognised upon asset completion, as well as an improved share of results from joint ventures.
-- BERNAMA