IOI Properties’ 1Q net profit surges nearly tenfold
IOI Properties Group Bhd (IOIPG) posted a nearly tenfold jump in net profit for its first quarter ended Sept 30, 2025 (1Q26), rising to RM664.33 million from RM69.17 million a year earlier.
The sharp increase was largely lifted by a one-off remeasurement gain of RM502.8 million from the group’s full acquisition of Scottsdale Properties Pte Ltd, alongside stronger contributions from its property development, property investment, and hospitality segments.
Quarterly revenue climbed 41% to RM968.7 million from RM687.85 million previously, supported primarily by higher sales and progress billings from ongoing developments.
According to the group, demand was underpinned by projects in the Klang Valley, Johor, and Singapore.
The property development segment recorded operating profit of RM155 million, more than doubling from RM75.3 million a year ago, reflecting higher sales from established townships such as 16 Sierra in Puchong South and the newly launched Senna Puteri in Salak Tinggi, Sepang.
Its property investment segment continued to deliver resilient results with operating profit rising 12% to RM149.7 million, supported by high occupancy rates at IOI City Mall, IOI Central Boulevard Towers in Singapore, and full consolidation of the South Beach assets following the Scottsdale acquisition.
The hospitality and leisure segment, while still contributing to overall growth, saw operating profit decline 28% to RM4.3 million as the Sheraton Grand Hotel in Xiamen enters its initial operational phase.
Nevertheless, Malaysia’s strong tourism sector, welcoming 28.2 million visitors in the first eight months of 2025, has bolstered the performance of the group’s hotels locally.
“We are pleased to kick off the new financial year on an encouraging note, underpinned by the resilience of our core business segments,” group CEO Lee Yeow Seng said.
“While challenges in the global economic environment may persist, the favourable interest rate outlook in Singapore and the positive prospects for Malaysia’s hospitality sector ahead of Visit Malaysia 2026 augur well for the Group. Barring any unforeseen events, the Group’s financial performance for the year is expected to be satisfactory.”
The property development segment achieved sales of RM473.6 million in 1Q26, with local projects contributing 81% of total sales.
Major contributors include the Klang Valley region with 16 Sierra and Senna Puteri, and the Johor region with Bandar Putra Kulai and Taman Kempas Utama.
Looking ahead, IOIPG expects its diversified portfolio spanning property development, investment, and hospitality across Malaysia, Singapore, and China to sustain solid performance, supported by recurring income from its investment properties and continued growth in the tourism and hospitality sectors.