IOIProp said earnings will also be supported by a sizeable recurring income stream from its established property investment portfolio and the favourable outlook of its hospitality and leisure segment.
PETALING JAYA: IOI Properties Group Bhd
(IOIProp) expects its future performance to remain satisfactory, underpinned by its diversified product offerings across three countries, particularly with the upcoming launch of Marina View Residences in Singapore.
In a filing with Bursa Malaysia, IOIProp said earnings will also be supported by a sizeable recurring income stream from its established property investment portfolio and the favourable outlook of its hospitality and leisure segment.
For its fourth quarter ended June 30, 2024 (4Q24) net profit jumped to RM1.55bil from RM235.37mil in the previous corresponding period, primarily driven by fair-value gains of RM1.9bil, largely attributed to the IOI Central Boulevard development in Singapore, which contributed RM1.3bil.
“However, the impact was partially offset by impairment losses on property, plant and equipment, as well as inventories written down totalling RM338.4mil.
“These adjustments are attributable to the China operations, reflecting the economic challenges posed by the downturn in China and the intense pricing competition near the Xiang An development,” the group said.
Meanwhile, revenue rose to RM782.61mil from RM666.46mil a year earlier, mainly attributed to improved performances across all segments.
Basic earnings per share stood at 28.08 sen compared with 4.27 sen previously.
For its financial year ended June 30, 2024 (FY24), IOIProp’s net profit improved to RM2.06bil from RM1.39bil in the previous corresponding period, while revenue rose to RM2.94bil from RM2.59bil previously.
IOIProp said the property investment segment maintained its stellar performance with commendable growth of 32%.
“The hospitality and leisure segment grew by 26% driven by the contributions from Moxy Putrajaya, a 480-room hotel which opened its doors just before Chinese New Year and the newly acquired 150-room W Kuala Lumpur, which came on board in February 2024.”
For FY24, IOIProp said its property development segment achieved sales of RM2.14bil.
“Local projects contributed the majority of the sales, amounting to RM1.94bil or 90% of the total sales, while overseas projects in China contributed RM186.4mil, amounting to 9% of total sales and Singapore contributed the remaining RM13.8mil or 1%.
“In Malaysia, sales secured were predominantly driven by the Klang Valley region at RM949.6mil, led by our integrated development at IOI Resort City in Putrajaya and the established township at Bandar Puteri Puchong in Selangor.”
Over in the Johor region, IOIProp said the registered sales of RM847.7mil was led by established townships at Bandar Putra Kulai and Taman Kempas Utama.
Commenting on the group’s performance, IOIProp group chief executive officer Lee Yeow Seng said concerted efforts to clear completed inventory over the last twelve months had yielded a reduction from RM2.41bil to RM1.92bil.
In a separate announcement, IOIProp said it had declined the offer to purchase Singapore commercial property Shenton House from its chief executive officer and major shareholder Lee.
However, it said its subsidiaries have been appointed to be the sole project manager and property manager for the redevelopment of the commercial property.
Shenton House was acquired by Lee’s private vehicle Shenton 101 Pte Ltd in a tender for S$538mil.
