Lagenda keeps affordable housing prices intact amid cost pressures

KUALA LUMPUR: Lagenda Properties Bhd plans to maintain its current housing price positioning despite rising global costs and inflationary pressures, reaffirming its commitment to affordable home ownership.

The property developer said its affordable housing-focused business model is expected to continue supporting performance in the coming quarters, supported by resilient demand for value-driven homes.

In a statement, Lagenda said it remains cautious of geopolitical uncertainties, inflationary pressures and broader external market challenges but expects the overall impact on operations to remain manageable, underpinned by resilient domestic demand.

The company also expressed optimism over its growth prospects, citing the expected normalisation of construction activities in the coming quarters, alongside planned launches in Sungai Petani, Kedah, and Senawang, Negeri Sembilan. It expects these developments to contribute to stronger financial performance in the near and long term.

Lagenda currently holds a landbank spanning about 1,618 hectares, with an estimated gross development value of RM10.28 billion across key strategic growth corridors nationwide.

For the first quarter ended March 31, 2026 (Q1 FY26), the company posted revenue of RM262.1 million and maintained stable profitability with a net profit of RM44.2 million.

Despite a softer start to the year due to slower construction progress during the festive season, Lagenda delivered resilient operational performance. As a result, revenue edged down 0.9 per cent year-on-year, primarily due to lower contributions from its property development segment.

Nevertheless, property development remained the company's KEY earnings contributor, accounting for some 90 per cent of total revenue. The company expects its performance to strengthen progressively, supported by an incremental uplift in construction activities, stronger revenue recognition, and profitability in the coming quarters.

Lagenda recorded property sales of about RM372.5 million during the quarter, driven by healthy demand for developments such as La' Lumiere in Kulai, Lagenda Ardea in Ulu Bernam, and La' Indera in Kuantan.

As at March 31, 2026, unbilled sales stood at a record high of about RM1.67 billion, providing strong earnings visibility for the coming quarters.