Encorp Berhad (“ENCORP” or the “Group”), a property development group with diversified interests across construction, investment property and facilities management, today announced its financial results for the financial year ended 31 December 2025 (“FY2025”), closing the year with revenue of RM92.6 million.
For the current quarter, revenue declined to RM19.2 million compared to RM25.5 million in the corresponding quarter last year (“Q4 FY2024”), mainly due to lower revenue contribution from the Property Development and Concessionaire segments. The Group recorded a loss before tax (“LBT”) of RM2.0 million compared to a profit before tax of RM6.5 million previously.
The variance was largely attributable to the absence of one-off legal provision reversals recognised in the previous year and lower progress billings during the quarter.
On a quarter-on-quarter basis, revenue decreased by 17% from Q3 FY2025. The softer performance was primarily due to lower revenue from Encorp Marina Puteri Harbour (“EMPH”) and partially offset by stronger contribution from Tilia.
Concession income moderated in line with the annuity-based deferred payment structure under the Privatisation Agreement, while rental income improved marginally supported by firmer rental rates at Warna Avenue. Contract revenue from replanting and logistics also recorded a modest increase, providing partial support to the quarter’s performance.
For the FY2025, the Group recorded revenue of RM92.6 million compared to RM104.0 million in FY2024. The Group reported a loss before tax of RM8.6 million for the year, compared to a profit before tax of RM6.1 million in the preceding year.
The prior year performance had benefited from a RM14.0 million legal provision reversal and RM1.2 million cost savings from the completed Lily phase, which did not recur in FY2025.
Segmentally, the Property Development segment remained profitable on a year-to-date basis, recording RM4.2 million in profit before tax. Contributions were driven by ongoing progress billings from Tilia and Lamanda Chuping Phase 1 although performance moderated compared to the previous year due to the absence of exceptional items.
The Investment Property segment demonstrated continued improvement. Revenue increased during the quarter supported by stronger rental rates at Strand Mall and Warna Avenue.
Rental rates at Strand Mall improved from RM1.64 per square foot in Q4 FY2024 to RM2.03 per square foot in Q4 FY2025, while Warna Avenue increased from RM2.02 per square foot to RM2.27 per square foot over the same period. Year-to-date losses for this segment narrowed to RM5.9 million from RM9.3 million previously, reflecting improving occupancy and rental yield recovery.
The Concessionaire segment recorded revenue of RM7.6 million during the quarter compared to RM10.1 million in Q4 FY2024, reflecting the scheduled deferred income recognition profile under the Privatisation Agreement. The concession is set to expire in 2028, with income structured as annuity-based deferred payments following completion and handover of the teachers’ quarters.
Encik Ahmad Harzimi Mohd Taib, Group Chief Executive Officer of ENCORP commented,
“FY2025 represents a transitional year as we continue to stabilise our development progress and strengthen recurring income streams. While the Group reported softer overall results compared to the exceptional prior year, our core development projects remain active and our investment properties are demonstrating encouraging rental growth momentum. We are focused on disciplined execution and rebuilding earnings visibility.”
Looking ahead, the Group remains cautiously optimistic on the property sector outlook. The lower Overnight Policy Rate environment is expected to support financing accessibility and stimulate demand, particularly within the affordable and mid-market housing segments. Tilia at Shah Alam, comprising 112 two-storey super link homes, is expected to complete in the first quarter of 2026 and continue contributing to earnings recognition.
The Balau Residences joint venture project in Teluk Cempedak, Kuantan, has achieved GreenRE Provisional Silver Certification, reinforcing the Group’s commitment to sustainability-led developments.
Meanwhile, the strategic partnership with FELDA remains intact, with Lamanda Chuping Phase 2 expected to enter planning stages later this year, focusing on medium-cost housing. The Investment Property segment is expected to benefit from rising tenant activity and rental optimisation initiatives at Strand Mall and Warna Avenue. Enhancement initiatives and improved tenant mix are anticipated to further strengthen recurring income contribution.
Through disciplined cost management, focused development execution and rental recovery initiatives, ENCORP remains committed to reinforcing its financial position and returning to a firmer earnings trajectory over the coming financial periods.
For more information, visit www.encorp.com.my.
