Higher interest costs push IOI Properties' Q3 earnings down to RM76.13mil
KUALA LUMPUR: IOI Properties Group Bhd's net profit dropped 65.4 per cent to RM76.13 million in the third quarter ended March 31, 2025 (3Q25) from RM220.21 million a year ago.
This was mainly due to higher interest costs following the recent commencement of operations of IOI Central Boulevard Towers (ICBT) in Singapore, the group said in a filing to Bursa Malaysia.
Its revenue for the quarter dropped to RM755.16 million from RM902.19 million previously.
This was due to absence of a land sale amounting to RM211.1 million recognised in the property development segment in the preceding year corresponding quarter.
IOI Properties' earnings per share came in lower 1.38 sen from 4.00 sen in 3Q24.
For the nine-month period (9MFY25), IOI Properties' net profit fell to RM240.08 million from RM516.15 million a year ago, while revenue rose to RM2.17 billion from RM2.16 billion.
In 9MFY25, the property development segment achieved sales of RM1.14 billion.
Local projects contributed RM1.02 billion, accounting for 90 per cent of total sales, while projects in China and Singapore contributed RM114.5 million, or 10 per cent of the total sales.
In Malaysia, sales were primarily driven by the Klang Valley region at RM641.7 million.
This was led by its thriving and matured integrated developments, namely IOI Resort City in Putrajaya and Bandar Puteri Puchong in Selangor.
Meanwhile, the Johor region registered RM367.9 million in sales, contributed by our vibrant townships, Bandar Putra Kulai and Taman Kempas Utama.
Group chief executive officer Lee Yeow Seng said while challenges in the global business environment and trade uncertainties persist, the group remains confident.
He added that its diversified product offerings across three countries, sizeable recurring income from its established property investment portfolio, and the favourable outlook of the hospitality and leisure segment provide a solid foundation for sustained earnings ahead.
"The group recently launched our "30 Years Together" campaign in Johor, offering attractive promotional packages for participating projects and a chance to win a holiday getaway that covers up to 30 international destinations.
"The campaign commemorates three decades of sustained growth in the southern region.
"The group will continue to align our diverse product offerings to both owner occupiers and investors alike for the years to come," he said in a separate statement.
IOI Properties said the property investment segment maintains its resilience, underpinned by strong recurring income from the group's retail and office assets.
The hospitality and leisure segment has embarked on its most comprehensive initiative with the launch of the "Visit IOI Resort City" campaign, uniting all the hotels, leisure attractions and IOI City Mall within the group's flagship township of IOI Resort City (IRC).
Over in China, the group said geopolitical risks and prevailing economic headwinds continue to pose challenges.
In response, the group has re-aligned the pricing for its completed inventories at IOI Palm International Parkhouse and this has led to a gradual pick-up in sales.
Over in Singapore, the group noted that both the residential and office markets continue to demonstrate resilience.