KUALA LUMPUR: Damansara Realty Bhd’s (DBhd) net profit jumped 20 per cent to RM2.3 million in the first-quarter (Q1) ended March 31, 2019.
This was boosted by recurring income contributions from its integrated facilities management (IFM) segment.
In a statement released today, DBhd said its Q1 revenue stood at RM71.29 million from RM71.25 million in the same period a year ago.
“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 group managing director Brian Iskandar Zulkarim.
He added that IFM continued to be the main driver in maintaining the company’s 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 said.
Recently, DBhd’s unit DAC Land Sdn Bhd (DACL) 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) of 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.
DBhd said the development will entitle DACL with a guaranteed profit sharing of RM41 million or 40 per cent of the GDV, whichever higher.
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,” Brian said.
DBhd will also continue focusing on the combining strengths of its property and land development and project management and consultancy segments through consultancy services to go beyond the healthcare sector in the areas of hospital construction and management.