KUALA LUMPUR (Sept 26): Selangor Properties Bhd’s net profit fell 54.6% to RM19.5 million in the third financial quarter ended July 31, 2017 (3QFY17), from RM43 million a year ago, on lower contribution from its business units.

Earnings per share for 3QFY17 also dropped to 5.68 sen, from 12.51 sen last year.

Quarterly revenue, however, came in 22.5% higher at RM31.9 million, from RM26 million in 3QFY16.

In a filing with Bursa Malaysia today, Selangor Properties said in its property investment segment, lower profit before tax was recorded due to higher staff costs and operating expenses, while losses in property development was a result of marketing costs on its AIRA Residence in Damansara Heights, as well as corporate and administrative costs.

For the cumulative nine months (9MFY17), net profit grew nearly eight times to RM72.2 million or 21 sen per share, from RM10 million or 2.9 sen per share a year ago, while revenue grew 10.7% to RM94.9 million, from RM85.8 million in 9MFY16.

Going forward, Selangor Properties said the property investment division is expected to remain stable and will continue to contribute positively to the group.

Its investment properties in Menara Milenium in Damansara Heights and Claremont Shopping Centre in Perth, Australia, continue to enjoy high occupancy rates.

“The sales of AIRA Residence project and its ongoing construction progress is expected to contribute positively to the financial year ending Oct 30, 2017 (FY17). The relaunch of the Bukit Permata project expected in early 2018, subject to market conditions, may further contribute to the results,” the filing added.

Its proposed development land bank in Damansara Heights is also in its initial planning stage, with considerations on designs that would provide integration and connectivity with the surrounding Mass Rapid Transit project.

“Preliminary planning works are progressing on the Wisma Damansara site, which construction works is expected to commence in two years' time,” Selangor Properties said.

Barring unforeseen circumstances, operations in Malaysia and Australia should remain positive in 2017, but exposure to foreign currency exchange will continue to affect its profitability in terms of overseas investments, the filing read.

Selangor Properties' counter closed unchanged at RM4.80 today, for a market capitalisation of RM1.65 billion.