IOI Properties’ 1H earnings surges on RM1.07b asset gains; underlying earnings up 87%

IOI Properties Group Bhd (IOIPG) posted a more than fivefold jump in profit before tax (PBT) to RM1.60 billion for the first half ended Dec 31, 2025 (1H26), from RM284.5 million a year earlier, lifted largely by fair value gains on its investment properties and a remeasurement gain on its Singapore asset, South Beach.

Revenue for the six-month period rose 42% to RM2.01 billion from RM1.42 billion previously, underpinned by stronger contributions across its property development, property investment and hospitality and leisure segments.

For the second quarter ended Dec 31, 2025 (2Q26), revenue increased to RM1.04 billion from RM729 million a year earlier, while quarterly PBT jumped to RM846.8 million from RM150.8 million.

The surge in earnings was primarily attributable to a fair value gain of RM567.1 million on investment properties and a remeasurement gain of RM502.8 million on South Beach.

Excluding these exceptional items, IOIPG’s underlying PBT for 1H26 rose 87% to RM530.6 million, reflecting improved operating performance across all three core segments.

Profit attributable to ordinary equity holders climbed to RM1.37 billion from RM163.9 million previously, translating into basic earnings per share of 24.94 sen compared with 2.98 sen a year ago.

Net assets per share strengthened to RM4.53 as at end-December 2025, from RM4.44 at end-June 2025.

In a statement, group chief executive officer Lee Yeow Seng said, “We are pleased to announce the strong financial performance, underscoring the strength of the Group’s core businesses. Barring any unforeseen events, the Group is confident of its performance for the financial year.”

He added that prospects are supported by “our diversified development offerings across three countries, ongoing developments in the industrial segment as well as the activation of data centre activities, sizeable recurring income streams from our established Property Investment portfolio, positive outlook of the Hospitality & Leisure segment, and the favourable interest rate environment in Singapore.”

The property development segment recorded sales of RM1 billion during the period.

Malaysian projects contributed RM803.7 million, or 80% of total sales, while projects in the People’s Republic of China accounted for RM134.8 million, or 14%, and Singapore made up RM63.8 million, or 6%.

In Malaysia, the Klang Valley led performance with RM512.5 million in sales, driven by its established township 16 Sierra in Puchong South and new launches at Senna Puteri in Salak Tinggi, Sepang.

The Johor region registered RM290.1 million in sales, supported by Bandar Putra Kulai and Taman Kempas Utama.

Separately, on Jan 29, 2026, the group entered into an agreement to dispose of 136 acres of land in IOI Industrial Park @ Banting for RM740.7 million.

The 322-acre industrial park, launched in December 2025, has attracted interest from Bridge Data Centres Malaysia VII Sdn Bhd.

On the disposal, Lee said, “Following this milestone, the remainder of the development is expected to command greater market appeal and draw heightened interest from potential buyers going forward.”

The property investment segment continued to benefit from high occupancy rates across its retail malls and office assets.

In Malaysia, IOI City Mall and IOI Mall Puchong maintained strong performances, supported by robust footfall.

The group said the ongoing rental reversion cycle at IOI City Mall contributed a substantial portion of the total fair value gain recorded in the current financial period, and that the valuation uplift “provides supportive context for the upcoming proposed REIT exercise.”

In Singapore, recurring income was driven by IOI Central Boulevard Towers and the newly acquired South Beach Tower, effective Sept 1, 2025.

The assets have secured committed occupancy rates of 96% and 100% respectively, with contributions expected to strengthen as actual occupancy ramps up.

The hospitality and leisure segment delivered a strong performance, supported by the additional contribution from JW Marriott Singapore South Beach and resilient tourism activity in Malaysia. The group said ongoing tourism initiatives, including Visit Malaysia 2026, are expected to provide further support to hotel occupancy and room rates going forward.