KUALA LUMPUR, 22 MAY 2023 – Affordable housing and integrated township developer Lagenda Properties Berhad (“Lagenda Properties” or “the Group”, Stock Code:7179) has today released its first quarter financial results for the three months ended 31 March 2023 (“1Q2023”).

In 1Q2023, Lagenda Properties reported revenue and profit after tax and minority interest (“PATAMI”) of RM181.0 million and RM39.3 million, respectively, while confirmed sales surged to RM257.5 million, an impressive 78% year-on-year increase. Revenue and PATAMI were 6% and 16% lower compared to the previous year’s corresponding quarter (1Q 2022) due to the different timing and stages of construction activities directly impacting revenue recognition. Lagenda Properties anticipates an acceleration in the construction progress for various townships, including Darulaman Lagenda (Kedah) and Lagenda Tropika (Perak), in the later part of the year. This will lead to a corresponding increase in progress billing, allowing revenue and profit to catch up for FY2023.

Lagenda remains bullish for FY2023 and the future, backed by the strong demand for the Group’s homes as evidenced by its impressive growth in confirmed sales. Notably, a significant portion of the growth in confirmed sales was driven by booking conversions in Darulaman Lagenda, which achieved an outstanding take-up rate of 94% as at the end of 1Q 2023. Building upon this success in Kedah, the Group has plans to launch Phase 3 in the second half of 2023. Revenue visibility is further underscored by unbilled sales amounting to RM781.8 million, while bookings of RM433.0 million as of 31 March 2023 provide a solid pipeline for future sales conversion.

Managing Director of Lagenda Properties, Dato’ Jimmy Doh <拿督卓致明> commented: “We are satisfied with our performance in 1Q2023. It is important to note that revenue and profits in the property development industry are closely tied to the construction stages of projects. As we embark on more projects in the future, we anticipate that our revenue recognition will be more evenly spread across these developments throughout the year.

In the forthcoming months, we anticipate a surge in momentum as we plan to launch over 7,000 homes across Perak, Kedah, and Johor this year. This is a significant increase in our launch volume, compared to the 4,800 homes launched in 2022 and demonstrates our commitment to meeting the growing demand for affordable housing while expanding our market footprint. With our proven track record and take-up rates so far, we are confident that the new launches will be well-received by the market. From a sales perspective, we have seen momentum increase steadily from January to March, and we anticipate this trend to continue as the year progresses with the roll-out of new launches.

Lagenda Properties has a track record of successfully developing the largest affordable housing townships in various states, starting with Perak and now Kedah. Aside from our activities this year, we are also preparing to achieve another key milestone by developing a major affordable township next year in Kulai, Johor. This upcoming large-scale township will boast a GDV of RM4 billion and will comprise 12,000 units of affordable homes with commercial parcels. With various projects in the pipeline over the next few years, we remain confident in delivering future growth. It is crucial to recognise that affordable housing is not a transient trend but an enduring necessity that transcends economic cycles and market fluctuations. The opportunities for Lagenda Properties are abundant in all states, and our growth journey has only just begun,” he added.