KUALA LUMPUR: After posting its first quarterly loss since 2020, Glomac Bhd is looking to rebound in the second quarter of the financial year ending April 30, 2026, while keeping its sights on the fast-growing data centre segment when the market stabilises.

Group managing director and chief executive officer Datuk Seri Fateh Iskandar Mohamed Mansor said the company remains confident of a turnaround, backed by ongoing projects and steady fundamentals.

He said the first-quarter net loss was mainly due to the timing of revenue recognition for ongoing projects.

“At Glomac, we have a policy where projects are only handed to contractors once 70 per cent of the units are sold, and revenue is recognised only after construction reaches 30 per cent progress.

“Some say we’re too conservative, but I prefer that approach. While other developers may recognise revenue as soon as sales are made, we do not; it is purely a matter of timing,” said Fateh Iskandar at a press conference following the group’s 41st annual general meeting (AGM).

At the meeting, shareholders approved a single-tier final dividend of 1.25 sen, bringing total dividends for financial year 2025 to 2.25 sen per share, representing a yield of 6.6 per cent based on the closing price of 34 sen on April 30, 2025.

Fateh Iskandar said the company expects to return to the black in the second quarter and remain profitable for the full financial year.

He said Glomac’s landbank currently exceeds 242 hectares, with a gross development value (GDV) of more than RM6 billion, of which RM5 billion is concentrated in the Klang Valley mainly in Selangor, while the remainder is in Kuala Lumpur and Johor, particularly in Kulai.

The company is also maintaining a cautious stance on its earlier plan to diversify into data centres.

“To build data centres requires significant capital, and we must be prudent. We need to ensure we already have a confirmed customer before we build. Even some players who have signed with clients have seen them pull back,” he said.

He said that Malaysia, particularly Johor, has emerged as a key data centre hub in Southeast Asia, but infrastructure challenges such as water and power supply constraints must be carefully considered.

“Until we have a confirmed tenant, it’s only prudent for us to wait. In the meantime, some of the land we had earmarked for data centres has been repurposed for commercial developments, as demand for two- and three-storey shop offices has been very strong,” Fateh Iskandar said.

On the government’s 2026 Budget, Fateh Iskandar said there were no major measures directly benefiting the property sector, but the continued stamp duty exemption for first-time homebuyers and a higher overall government expenditure could indirectly support the industry.

“To say there was a major boost for the real estate sector would be an overstatement. However, I hope the government will revisit it during the next budget review, which happens every six months.

“As I’ve shared before, our wish list includes the return of the Home Ownership Campaign (HOC) with full stamp duty exemptions for a year, along with better loan margins to support homebuyers,” he said.

Glomac plans to introduce about RM324 million worth of new projects in financial year 2026, mainly comprising landed residential developments within its established townships, which will be launched in phases to align with market conditions and maximise take-up rates

Source: New Straits Times