Encorp Berhad (“Encorp” or the “Group”), a property development group with diversified interests across construction, investment property and facilities management, is pleased to announce its financial results for the third quarter ended 30 September 2025 (“Q3 FY2025”), recording a revenue of RM23.0 million, an improvement from RM21.0 million in the preceding quarter last year which was attributed to higher revenue from Property Development segment.
For the current quarter, Encorp delivered a stronger year-on-year performance, with revenue rising to RM23.0 million compared to RM21.0 million in the corresponding quarter last year (“Q3 FY2024”). The improvement was driven primarily by higher progress billings from the Tilia, Iris, Clover, Lamanda Chuping Phase 1 and Cahaya Kristal developments. Loss before tax (“LBT”) narrowed significantly to RM2.0 million from RM13.1 million in Q3 FY2024, reflecting improved operational efficiency and the absence of prior-year legal reversals, while rising rental rates at Strand Mall and Warna Avenue continued to underpin recurring income.
Compared to the preceding quarter (“Q2 FY2025”), the Group recorded a softer performance as revenue eased by 27%, largely due to lower progress billings from EMPH and Tilia. Concession income moderated in line with the annuity-based deferred payment structure under the Privatisation Agreement. Nevertheless, rental income recorded a slight uptick, supported by firmer rates and occupancy, and contract revenue from replanting and logistics also improved marginally, cushioning the quarter-on-quarter decline.
For the cumulative nine months of FY2025 (“9M FY2025”), the Property Development segment remained profitable with RM4.2 million in profit before tax. While this is lower than the previous year due to the absence of a one-off RM14 million legal provision reversal and RM1.2 million cost savings from the Lily phase, underlying contributions from active developments remained stable. The Investment Property segment also continued its recovery, reducing its loss before tax to RM7.4 million from RM8.5 million in 9M FY2024, driven by higher rental yields and improving occupancy at Strand Mall and Warna Avenue.
Encik Ahmad Harzimi Mohd Taib, Group Chief Executive Officer of Encorp Berhad commented, “The third quarter marks a meaningful step forward in our recovery path. While market conditions remain challenging, the improvement in year-on-year revenue and the substantial narrowing of losses reflect the early results of the turnaround initiatives we have been executing across our development and investment property segments. We are seeing healthier progress recognitions from key projects, while our investment properties continue to benefit from rising rental rates and stronger tenant activity at Strand Mall and Warna Avenue.”
Looking ahead, Encorp reaffirmed that its turnaround plan remains firmly on track, supported by a diversified pipeline of ongoing and upcoming projects. The final phase of Tilia in Shah Alam, the Cahaya Kristal development in Kota Kinabalu and the fully taken-up Lamanda Chuping Phase 1 are expected to continue contributing to FY2025 and FY2026 performance. Preparatory work for Lamanda Chuping Phase 2 is progressing, while Balau Residences has advanced through key approval milestones and is poised to contribute from FY2026 onwards. The Cockburn landbank in Western Australia is also being positioned as a medium-term catalyst, benefiting from sustained demand in the Perth residential market.
Beyond development activities, the Group is strengthening recurring income through active tenanting and enhancement initiatives across its investment properties. New entertainment, healthcare and F&B tenants at Strand Mall are expected to drive higher footfall, improve rental yields and reinforce the Group’s recurring income base. Encorp is also deepening collaboration with FELDA and PKNS to widen its development portfolio and pursue additional opportunities that support sustainable long-term growth. Through these combined initiatives, the Group remains confident that its structured turnaround strategy will place Encorp on a firmer financial trajectory in the coming quarters.
