S P Setia Bhd announced the successful disposal of a non-core land parcel in Johor for RM350 million. This strategic move is expected to significantly boost its upcoming Q4 earnings and improve the company's balance sheet structure.
Leading property developer S P Setia Bhd announced the completion of the disposal of a non-core land parcel in Johor, valued at RM350 million. This transaction is expected to contribute significantly to the company's net earnings for the fourth quarter of the financial year ending December 31, 2025 (Q4 FY2025). Management stated that the proceeds will primarily be utilized to pare down existing borrowings, thereby reducing the gearing ratio and enhancing financial flexibility for future core development projects. The market reacted positively, with S P Setia's stock price edging up 0.5% following the announcement. Analysts view this move as a positive step towards optimizing land banks and focusing on high-value core developments amid a challenging property market.
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