DEVELOPERS remain cautious of their financial performance outlook for the final quarter this year (4Q20) on the back of slow conversion rate and the reintroduction of the Conditional Movement Control Order (CMCO) across most states during the period.
Data compiled by Bloomberg showed that eight of the top 10 property firms listed on Bursa Malaysia posted a net profit increase in 3Q on a quarter-on-quarter (QoQ) basis, signalling a gradual recovery in the property market. The only two companies which recorded a QoQ loss were Sime Darby Property Bhd (SDP) and SP Setia Bhd.
SDP saw its net loss widen to RM355.26 million in its 3Q20 ended Sept 30, 2020, from a net loss of RM81.77 million in 2Q20, mainly due to share of impairment loss from Battersea Project Holding Co Ltd, which owns 40%. SP Setia also saw its net loss extended to RM263.43 million from RM141.55 million over the same period, hurt by impairments.
