On the right, Land & General Berhad's Managing Director Low Gay Teck and on the left, Land & General Berhad's Chief Financial Officer Tan Boon Siong. Image from: Land & General Berhad

Land & General Berhad (“L&G” or the “Company”) announced its results for its financial year ended 31 March 2020 following its 57th Annual General Meeting (“AGM”) last week, which reported a marginal revenue improvement but a reduction in pre-tax profits.

The group’s revenue of RM139.7 million for its financial year ended 31 March 2020 (“FY2020”) was marginally higher compared to RM134.4 million for the corresponding financial year ended 31 March 2019 (“FY2019”).

The Company’s revenue was principally derived from its property division, led by the 3 on-going development projects - Astoria Ampang, Sena Parc Senawang and Damansara Seresta. Sales and construction progress for these three projects during the financial year led to higher revenues in FY2020 compared to FY2019.

For FY2020, the group’s pre-tax profit was RM26.2 million, down from RM52.9 million a year ago, primarily due to its other earnings being reduced by half in FY2020 because of a significantly reduced writeback of provision relating to the liquidation of a former subsidiary in comparison to a year earlier.

During FY2020, the Group focused on developing and selling its on-going projects, which resulted in higher number of units sold and increased sales value as compared to a year ago.

Astoria Ampang Phase 1 which houses 506 units of serviced apartment will be handed over to homebuyers next month. This project comprises 2 phases of 1,012 units with a total GDV of RM840 million. Phase 1 has achieved a take-up rate (including bookings) of 391 units or 77% to-date.

Sena Parc Phase 1A which is located in Senawang comprises 163 units of double-storey terrace link houses with a GDV of RM79 million, the project was handed over earlier this month with a take-up rate (including bookings) of 150 units or 92%. The Group plans to soft launch an upcoming Phase 1C comprising 54 units of double-storey terrace link houses with GDV of RM27 million this month.

Another ongoing project of the group is Damansara Seresta, located in Bandar Sri Damansara, consisting of two blocks of 452 condominium units with a GDV of RM450 million. For this project, the take-up rate (including bookings) is 213 units or 47% to date. The project is slated for completion in 2022.

The group plans to launch two new development projects for the next calendar year, namely Aria Rimba in U10 Shah Alam, and a yet-to-be-named project located at the former Sri Damansara Club in Bandar Sri Damansara.

Aria Rimba is a 112-acre township development with an estimated total GDV of RM1.2 billion. In the following year, L&G is expected to launch Phase 1A (150 units of double-storey terrace houses) and Rumah Selangorku Type A (162 units of medium-rise apartments) with a GDV of RM107 million.

The Sri Damansara Club project is a mixed development spanning 14 acres located along Persiaran Perdana from the group’s head office in Bandar Sri Damansara, with an estimated total GDV of RM2.0 billion. For next year, L&G plans to launch Phase 1 (732 units of high-rise serviced apartments) and Phase 2 (602 units of affordable Type D units) with a combined GDV of RM570 million.

“For next year, we will launch Phase 1A of Aria Rimba project in Shah Alam comprising 150 units of double-storey terraces and 162 units of medium-rise Rumah Selangorku apartment. Sri Damansara Club project is a transit-oriented development (TOD) development project in Bandar Sri Damansara, whereby the MRT2 station is less than 400m away, and it will be connected by a sheltered link bridge from the station to the development. When these 2 projects are launched, the L&G Group would have a total of 5 development projects on offer to the public”, says Mr Low.

L&G remains in a healthy financial position with cash reserve of RM110 million as at 31 March 2020, and a net gearing ratio of only 0.09 times of its shareholders’ funds. “Our focus for the rest of the year and next year will remain on sales. The Home Ownership Campaign 2020 together with the current low interest rate environment should help stimulate demand. With Phase 1 Astoria Ampang and Phase 1A Sena Parc now completed, and with the 2 attractive developments coming on-stream next year, we look forward to better sales and better financial performance next year” says Mr. Low.

(28 September 2020)