Damansara Realty Berhad (DBhd or the Group) saw its first-quarter net profit jump by 20 percent to RM2.3 million for the first quarter ended 31 March 2019, boosted by recurring income contributions from its Integrated Facilities Management (IFM) segment through on-going key contracts at RAPID Pengerang, Dataran Maybank, and MRT Stations.
DBhd’s profit before tax rose 6.7 percent to RM3.5 million on the back of revenue which grew to RM71.29 million for the first quarter ended 31 March 2019. Its organic growth has pushed the Group’s first-quarter operating profit up by 2.5 percent to RM3.7 million from RM3.6 million in the previous quarter.
“The operating profit and strong recurring income reflect our ability to generate better quality earnings, as we continue to shift our business focus to high-growth markets and higher-margin projects,” said Ts. Brian Iskandar Zulkarim, Group Managing Director.
“While the IFM continues to be the main driver in maintaining our sustainable profitability, we are also looking to diversify our development activities as the property market recovers. To do that, we remain selective with development projects that can improve the Group’s margins, cash flow and bottom-line performance,” he added.
Recently, DBhd’s subsidiary DAC Land Sdn. Bhd. (DACL), has partnered with Active Estates Sdn Bhd (AESB) to jointly develop its commercial project Aliff Square 3 in Tampoi, Johor with an estimated gross development value (GDV) worth RM180 million. The 6.9-acre Aliff Square 3 development will consist of 68 units of freehold commercial shop lots to be developed in four phases over five years.
In a filing with Bursa Malaysia, DBhd said the development will entitle DACL with a guaranteed profit sharing of RM41 million or 40 percent of the GDV (whichever higher) whilst AESB, a construction company specialising in non-residential development and construction will source its own financing for the development.
“With Aliff Square 1 and 2 fully sold, we've proven our ability to design and build products that meet customers' demands. Leveraging on Taman Damansara Aliff’s strategic location and excellent connectivity we expect Aliff Square 3 to build on the success of Aliff Square 1 and 2,” “This partnership is part of DBhd’s long term strategy to form strategic alliances as a key enabler in delivering continued growth by scaling up and expanding the size and scope of our offerings.” Ts. Brian said.
Moving forward, DBhd will continue focusing on the combining strengths of its Property and Land Development (PLD) and Project Management and Consultancy (PMC) segments through consultancy services to go beyond the healthcare sector in the areas of hospital construction and management which will diversify income streams as well as support the Group’s property projects.
*Ts. stands for the title of ‘Certified Professional Technologist’ awarded by the Malaysia Board of Technologists (MBOT).