Sime Darby Property "Rising data centre demand, private capital in tow" (Buy)

Research evidence excerpt

Sime Darby Property "Rising data centre demand, private capital in tow" (Buy)

Global Research

9 June 2026ab

Sime Darby Property Equities

MalaysiaRising data centre demand, private capital in tow

Real Estate

12-month rating Buy

Steps in the right direction; positive sector/stock read-through

Sime Darby Property (SDP) released details of its private fund (link), the RM1.25bn New 12m price target RM1.74

Economy Venture Fund. While partially expected, key details of the strategy were not

well understood. We think this is a positive step forward for the property sector and

Price (08 Jun 2026) RM1.37

stock, summarised below. We also recommend a related read: APAC Focus: Malaysia

Property - Time to build back better. RIC: SIPR.KL BBG: SDPR MK

(1) More demand for data centers coming >> Extract from the announcement: Trading data and key metrics

"prospects of the Fund are supported by the increasing demand for data centres 52-wk range RM1.59-1.23

and strong and continued demand is anticipated for modern industrial and Market cap. RM9.32b/US$2.29b

logistics facilities". We think this is another demand signal that supports some of Shares o/s 6,801m (ORD)

the recent comments by property developers over incoming data centre interest. Free float 45%

(2) More private capital is coming >> And this is being channelled towards where Avg. daily volume ('000) 10,688

it is needed - data centres, industrial properties that are grounded on long term (10 Avg. daily value (m) RM15

year) leases. We think this is the directionally right way of allocating capital to Common s/h equity (12/25E) RM10.7b

avoid 'oversupply mistakes of the past', where a lot of developers' leverage had P/BV (12/25E) 0.9x

been channelled into the residential segment. Where local sovereign investors and