Sime Darby Property on Track for RM4 Billion FY26 Sales as Data Centre Projects Drive Growth

KUALA LUMPUR, May 2026 — Analysts remain positive on Sime Darby Property Berhad’s outlook for the financial year 2026, with the group seen as being on track to achieve its RM4 billion sales target, supported by stronger industrial property momentum and new earnings contribution from its build-to-lease data centre projects.

According to DagangNews, Public Investment Bank and RHB Research have maintained their positive views on the property developer despite a challenging property market environment. PublicInvest kept its “outperform” call with a target price of RM1.55, while RHB Research maintained a “buy” recommendation with a target price of RM2.15, implying potential upside of around 50%.

The optimism is supported by Sime Darby Property’s strong start to FY2026. The group recorded sales of RM918.9 million in the first quarter ended March 31, 2026, representing about 23% of its full-year sales target of RM4.0 billion. The group also reported RM1.1 billion in overall bookings as at May 17, 2026, creating a stronger pipeline for the following quarters.

Sime Darby Property’s unbilled sales also increased to RM4.1 billion, giving the group clearer earnings and cash flow visibility beyond the next three years. This is an important indicator for property developers, as unbilled sales represent future revenue that has already been secured but not yet recognised in financial statements.

Industrial properties continued to anchor the group’s sales performance in Q1 FY2026. Sime Darby Property said industrial products contributed RM487.0 million, or 53% of total quarterly sales, followed by residential landed properties at RM219.7 million, residential high-rise units at RM157.6 million and commercial products at RM52.6 million.

The strong industrial demand reflects growing investor and business interest in well-planned industrial townships, logistics hubs and technology-driven developments. Sime Darby Property’s key townships, including Bandar Bukit Raja, City of Elmina, Serenia City, Elmina Business Park and Nilai Impian, continued to support the group’s performance during the quarter.

For Q1 FY2026, Sime Darby Property posted revenue of RM799.2 million, while operating profit increased 24% year-on-year to RM234.3 million. Profit before tax rose 32% to RM236.3 million, while profit after tax and minority interest increased 34% year-on-year to RM158.8 million.

A key driver of the improved profit was the fair value gain recognised upon completion of the group’s first hyperscale build-to-lease data centre. The data centre project has strengthened Sime Darby Property’s transition from a traditional township developer into a broader real estate company with recurring income streams.

RHB Research also noted that the group’s Q1 performance was encouraging, especially as the first quarter is usually a slower period for property launches and sales. DagangNews reported that Sime Darby Property’s core net profit was estimated at RM93.7 million after excluding the exceptional fair value gain, which was still considered within market expectations.

The data centre segment is now seen as a major new growth catalyst for Sime Darby Property. The company has been expanding its presence in this sector through build-and-lease agreements at Elmina Business Park, positioning the township as a strategic hub for industrial, logistics and technology-related assets.

In December 2024, Sime Darby Property announced additional data centre developments at Elmina Business Park under a build-and-lease agreement with Pearl Computing Malaysia Sdn Bhd, with a 20-year lease value of up to RM5.6 billion. The facilities are being developed on a 31.16-hectare site near Pearl Computing’s first data centre, with construction targeted for completion in 2027.

The group has also awarded a RM1.26 billion contract to IJM Construction for the main building works of a hyperscale data centre at Elmina Business Park. Sime Darby Property said the project spans approximately 77 acres and supports its ambition to establish Elmina Business Park as a regional hub for technology-driven developments.

These data centre projects are expected to expand Sime Darby Property’s recurring income base under its Investment and Asset Management division. For property developers, recurring income is increasingly important because it provides more stable long-term earnings compared with one-off property sales.

Sime Darby Property’s Investment and Asset Management segment also delivered stronger results in Q1 FY2026, with revenue of RM53.9 million and profit before tax of RM16.5 million. The improved performance was supported by the group’s retail portfolio, including KL East Mall, Elmina Lakeside Mall and KLGCC Mall, as well as industrial assets in Bandar Bukit Raja.

During the quarter, the group launched developments with a combined gross development value of RM563.4 million. Industrial products accounted for 92% of those launches, reinforcing Sime Darby Property’s strategic focus on industrial offerings within growth corridors.

Looking ahead, analysts expect sales momentum to remain firm in the coming quarters, particularly because a large portion of Sime Darby Property’s new project launches were only introduced toward the end of March 2026. RHB Research also noted that the group is maintaining its FY26 launch plan with a gross development value of RM4.7 billion, including its maiden project in Melbourne, Australia, worth RM900 million.

Although the broader property market remains challenging due to cost pressures, affordability concerns and cautious consumer sentiment, Sime Darby Property’s diversified product mix may help cushion the impact. Its exposure to industrial properties, data centres, recurring income assets and selected residential developments provides multiple earnings drivers.

The company’s strategy also reflects a wider shift in Malaysia’s real estate sector, where developers are increasingly moving beyond conventional residential projects and into logistics parks, industrial assets and digital infrastructure. Demand for data centres in Malaysia has grown as global technology companies seek locations with available land, power access, connectivity and supportive state policies.

Elmina Business Park is expected to play a central role in Sime Darby Property’s next stage of growth. Its location in Selangor, combined with industrial land availability and access to infrastructure, makes it suitable for logistics, manufacturing and data centre-related investments.

Overall, analysts believe Sime Darby Property’s strong Q1 FY2026 performance, RM4.1 billion in unbilled sales, growing industrial property demand and expanding data centre portfolio

If the data centre projects progress as planned, the segment could become a meaningful long-term earnings catalyst and help Sime Darby Property strengthen its position as one of Malaysia’s leading diversified real estate developers.