IOI Properties’ 2Q profit swells on hefty fair value gain, full control of Singapore's South Beach

KUALA LUMPUR (Feb 27): IOI Properties Group Bhd (KL:IOIPG) reported an over seven-fold increase in its second-quarter net profit, driven by a huge RM567.1 million fair value gain on its investment properties, and contributions from its full ownership of Scottsdale Properties Pte Ltd.

Net profit for the quarter ended Dec 31, 2025 (2QFY2026) soared to RM708.84 million from RM94.78 million a year earlier, the property group’s bourse filing on Friday showed. Revenue jumped 42.8% to RM1.04 billion from RM729 million. No dividend was declared with the latest earnings announcement.
 
Underlying profit — excluding the fair value gain — grew 85.5% to RM279.7 million from RM128.9 million. Aside from the full consolidation of Scottsdale's earnings, all its business segments recorded higher contributions.

For the six months ended Dec 31, 2025 (1HFY2026), the group's net profit jumped to RM1.37 billion from RM163.95 million in the same period a year earlier, while revenue climbed 41.8% to RM2.01 billion from RM1.42 billion.

Excluding exceptional items — specifically the RM567.1 million fair value gain on investment properties and a RM502.8 million remeasurement gain on South Beach that was recorded in the first quarter — the group's underlying 1HFY2026 profit before tax rose 87% to RM530.6 million from RM284.5 million, underpinned by stronger contributions across all segments, it noted.

The group attributed the improved half-year earnings to stronger performance across all segments.

"For the property development segment, the group recorded a new revenue stream from the sale of W Residence commencing October 2025, coupled with improved sales performance in the Malaysia and PRC (People's Republic of China) regions," it said.

At this half-year mark, the group has achieved RM1 billion in property sales, meeting half of its targeted RM2 billion sales for the year. Local projects accounted for 80% of sales, while China contributed 14%, and Singapore the remaining 6%.

Over at its property investment and hospitality and leisure businesses, growth was largely driven by contributions from new assets, including the commencement of operations of Sheraton Grand in March 2025, and higher contribution from JW Marriott Singapore South Beach, where IOI Properties obtained full control from Sept 1, 2025.

IOI Properties is confident of its performance for the rest of FY2026, as its property development segment remains on track, property investment continues to outperform on high occupancy rates, and hospitality and leisure delivered strong performance on additional contribution from JW Marriott Singapore South Beach.

Shares in IOI Properties ended 12 sen or 3.36% lower at RM3.45 on Friday, valuing the group at RM19 billion.