IOI Properties’ FY25 net profit halves to RM1.06b, declares 8 sen dividend
IOI Properties Group Bhd saw its net profit fall 48% to RM1.06 billion for the financial year ended June 30, 2025 (FY25), from RM2.06 billion a year earlier, on lower fair value gains and higher interest costs.
Revenue, however, was marginally higher at RM3.06 billion, lifted by stronger performances from its property investment and hospitality & leisure divisions, which rose 46% and 70% respectively.
In the fourth quarter (4Q25), net profit dropped 47% year-on-year to RM823.93 million from RM1.55 billion, while revenue stood at RM130.16 million.
The group declared a dividend of 8 sen per share for FY2025.
IOI Properties said the weaker bottom line was largely due to lower investment property revaluation gains and higher borrowing costs following the commencement of IOI Central Boulevard Towers in Singapore.
Despite this, group CEO Lee Yeow Seng (picture) called the results “commendable”.
“Looking ahead, we remain confident that our diversified product offerings across three countries, sizeable recurring income stream from our established property investment portfolio, and the favourable outlook of the hospitality & leisure segment provides the Group with a solid foundation for sustained earnings ahead,” he said.
The property development segment recorded RM1.81 billion in sales during FY2025, with local projects contributing RM1.62 billion or 89% of the total.
Klang Valley developments contributed RM946.8 million, led by IOI Resort City in Putrajaya and 16 Sierra in Selangor, while Johor contributed RM663.8 million from Bandar Putra Kulai and Taman Kempas Utama.
Projects in China and Singapore contributed RM187.6 million.
The group’s completed inventories also declined to RM1.27 billion from RM1.92 billion a year earlier.
Malls and hotels boost recurring income
IOI City Mall and IOI Mall Puchong contributed fair value gains of RM651.4 million and RM61.1 million respectively, while IOI City Tower One achieved full occupancy.
Hotels under the group benefited from Malaysia overtaking Thailand as Southeast Asia’s top tourist destination in the first five months of 2025, with management expecting Visit Malaysia 2026 to further drive the segment.
In China, the newly opened Sheraton Grand Xiamen Jimei showed improving occupancy despite macroeconomic headwinds.
In Singapore, IOI Central Boulevard Towers reached an 88% commitment rate, while W Residences Marina View advanced to the 14th floor in construction.
IOI also announced plans to acquire the remaining stake in the South Beach development from City Developments Ltd, which would give it full management control.