PETALING JAYA: S P Setia Bhd has continued to demonstrate a steady performance as it registered an increase of 34% in sales, hitting RM1.186bil for the second quarter ended June 30, 2025 (2Q25).

In a statement, the property developer said sales for the quarter was higher than the RM833mil registered in the same quarter last year mainly from its domestic projects.

“Sales in the first half of financial year 2025 were mainly contributed by domestic projects at RM1.42bil, representing 75% of total sales, while the group’s international projects contributed RM480mil, about 25% of the total sales,” it said.

The group added central region contributed sales totalling RM955mil while the southern region accounted for RM430mil.

It registered a revenue of RM944mil for the quarter under review, while for the first half of 2025, the group posted a revenue of RM1.71bil and a pre-tax profit of RM337mil.

The Battersea Power Station in the UK also registered a better quarter.

“We have continued to reduce borrowings, with a current net-gearing ratio of 0.34 times, aligning with our debt reduction strategies,” it stated.

The group did not declare any dividends for the quarter under review.

President and chief executive officer Datuk Choong Kai Wai said the quarterly performance reflected its persistence efforts in delivering quality products and diversifying its portfolio, while remaining cognisant of the market challenges.

On July 9, Bank Negara Malaysia, for the first time in five years, cut the overnight policy rate by 25 basis points.

Choong said the rate cut signalled anticipated growth in the property development industry, particularly in the residential segment, by improving buyer affordability, reducing developers’ financing costs and potentially boosting market sentiment amid heightened global uncertainty as well as rising construction costs.

“Amid the current market challenges, our outlook remains cautiously optimistic while we look for opportunities to expand our presence across our targeted high-growth segments,” he noted.

Meanwhile, S P Setia will continue to accelerate its catalytic township developments, eco-industrial parks, strategic partnerships and capitalising on value creation across its key growth corridors.

On its international front, the group held a groundbreaking ceremony for its Setia Garden Residences project at its EcoXuan township in Ho Chi Minh City, Vietnam on July 26.

“With a gross development value (GDV) of US$81mil (RM381.1mil), Setia Garden Residences is scheduled for completion in 2027, and is positioned to become a new landmark in the northern corridor of Ho Chi Minh City,” the group said.

As of June 30, 2025, S P Setia has an unbilled sales pipeline of RM3.9bil, 42 ongoing projects and with a remaining land bank of 5,191 acres, and an effective remaining GDV of RM90.18bil.

Separately, S P Setia said it had signed key collaboration terms with Ally Logistic Property Co Ltd, Taiwan’s largest warehousing infrastructure developer, to develop a build-to-lease warehouse on a 42-acre plot at Setia Alaman in Klang, Selangor.

Located just 5km from Bandar Setia Alam, Setia Alaman Industrial Park forms part of Setia’s eco-industrial site masterplan, which has an estimated GDV of up to RM4bil.

The development will feature two smart warehouses equipped with automated storage and retrieval systems, one for advanced cold chain logistics and the other for high-efficiency ambient storage, providing 1.5 million sq ft in floor area and offering capacity for 150,000 pallet locations, according to S P Setia.