KUCHING: Pelaburan Hartanah Berhad (PHB) has announced its audited financial results for the year ended December 31, 2024, marking its strongest performance to date.
The Group recorded a net profit of RM117.2 million, more than tripling from RM31.7 million in the previous year, driven by strategic initiatives implemented throughout the financial year.
According to its statement, the record-high revenue of RM464.4 million represented a 17 per cent increase from RM396.0 million in FY2023.
“This growth was supported by higher rental income, improved occupancy rates, and contributions from newly completed key assets,” PHB said.
Net Property Income (NPI) rose 25 per cent to RM275.2 million, reflecting effective asset management and disciplined cost control across PHB’s portfolio.
PHB’s revenue growth was largely driven by a stronger retail market, increased property-related income, and the completion of two major developments.
Mayang Mall in Kuala Terengganu and the Maersk LF Logistics Warehouse in Shah Alam significantly contributed to rental income, with Mayang Mall achieving an occupancy rate exceeding 80 per cent as of December 31, 2024.
The Group also benefited from lower borrowing costs, which declined 13 per cent to RM38.4 million following PHB’s RM1.5 billion sukuk issuance in September 2024.
Strong market demand, reflected in a 2.2 times oversubscription, resulted in lower financing costs, leading to estimated savings of RM14 million to be fully realised in FY2025.
Operating profit increased 28 per cent to RM407.0 million, up from RM317.2 million in the previous year, driven by stronger earnings and enhanced cost efficiencies.
The strategic insourcing of Amanah Hartanah Bumiputera (AHB) fund management contributed RM8.8 million in net revenue, with expectations to at least double this figure in FY2025.
Meanwhile, the restructuring of PHB’s key subsidiaries, including PHB Facility Management Berhad and PHB Asset Management Berhad, is projected to yield annual cost savings of RM4.5 million upon full implementation in FY2025.
PHB’s strong financial performance enabled a total dividend disbursement of RM231.5 million, benefiting approximately 82,000 bumiputera investors of AHB.
The company further strengthened its financial position with an AAA/Stable credit rating from RAM Ratings and a Gold 3 Sustainability Rating from RAM Sustainability, highlighting its commitment to strong governance and financial sustainability.
PHB Group Managing Director and CEO Mohamad Damshal Awang Damit said that achieving the company’s highest revenue and profitability since inception is a testament to the strength of their strategy and disciplined execution, as well as the trust placed in them by stakeholders.
“This achievement is not driven by one-off gains but by the strategic transformation initiated in 2024. The substantial improvement in FY2024 is just the beginning of our transformation journey, with greater progress ahead as we continue executing our long-term strategy.
“This success would not have been possible without the dedication of our team and the resilience of our portfolio.
“The favourable market response to our sukuk issuance further validates confidence in our long-term vision, reinforcing our responsibility to sustain this momentum through prudent financial management and value-driven investments,” he said.
Looking ahead, PHB’s three-year business plan focuses on long-term portfolio growth while ensuring agility in a dynamic market.
The company remains committed to a prudent, risk-aware investment strategy, ensuring sustainable growth while safeguarding asset value.
“We are expanding into high-growth sectors such as healthcare, industrial, and education while strengthening our presence in new markets, including the East Coast, Sabah, and Sarawak, and actively participating in new developments, particularly in Malay Reserve Land.
“The company is also strengthening lease structures by securing long-term, creditworthy tenants, minimising rental income volatility and ensuring consistent cash flow.
“A key priority is growing the AHB fund to provide Bumiputera investors with greater access to prime commercial real estate ownership, aligning with our social mandate of empowering bumiputera economic participation while ensuring sustainable financial returns.
“To further strengthen investment resilience, PHB continuously monitors property market trends and conducts stress tests, ensuring informed and data-driven decision-making,” he said.
In response to rising demand for ESG-certified office spaces, PHB is deepening its sustainability commitment.
Currently, six buildings are certified green under GBI or LEED, with a target to achieve 50 per cent portfolio-wide green certification by 2030.
The company is also exploring collaborative investment models, including forward commit and forward funding, to enhance capital efficiency and secure stable, long-term returns.
