IOI Properties Group’s profit before interest and tax for financial year 2020 is up by 6%

For the full financial year 2020, IOI Properties Group Berhad (IOIPG) recorded a strong revenue of  RM2,116.3 million and a 6% increase in its profit before interest and taxation of RM1,010.0 million (excluding fair value and impairment losses on investment properties and write down in value on  property development costs and inventories) compared with the last financial year (excluding fair value  gain on investment properties).

For the fourth quarter ended 30 June 2020 (Q4 2020), IOIPG reported a significant improvement in  revenue and operating profit for its property development segment despite a challenging business  environment resulting from the COVID-19 pandemic. Revenue from the property development  segment was RM544.6 million or 53% higher than the preceding year corresponding quarter, while  operating profit surged 193% to RM314.9 million in Q4 2020. 

Our China operations registered strong sales performance during Q4 2020 due to the pent-up demand  following China’s recovery from the COVID-19 pandemic. We expect the demand for residential  properties to normalise and consequently, the strong sales performance to moderate during the next few quarters.

Revenue from the property investment, and hospitality and leisure segments were RM54.4 million and RM9.8 million respectively in Q4 2020 which were 40% and 80% lower respectively in comparison  with the preceding year corresponding quarter due to the unprecedented disruption on business  activities and cross-border travel as a result of the pandemic.

For Q4 2020, IOIPG recorded a total revenue of RM610.5 million, which was RM112.7 million or 23% higher than the preceding year corresponding quarter. Net profit for the current quarter was RM49.5 million.

Going forward, the Group will embrace the new norm and continue to leverage on its digital marketing capabilities and IOI eMarketplace platform to expedite property transaction processes. The Group will also adopt aggressive sales and marketing strategies and take innovative initiatives to enhance customer experience.

IOIPG Chief Executive Officer Dato’ Voon Tin Yow said despite the current challenging operating environment, the property market is expected to improve progressively in response to the various  economic stimulus initiatives by the Government.

“We expect the reintroduction of the Home Ownership Campaign under the National Economic Recovery Plan (PENJANA) to boost the housing market. We will emphasise on mid-price range products to meet the market demands as the trend in our existing townships indicates that mid-price  range units are most sought-after,” he added.

The property investment segment has adopted active and pragmatic tenant retention strategies to maintain occupancy rates and to support our business partners and tenants in the interest of long term sustainable collaborations, and this has shown positive results.

With the Recovery Movement Control Order (RMCO) and cross-border travel restriction in place, we  anticipate the recovery of the hospitality and leisure segment to take a longer time.

In Singapore, the construction progress of Central Boulevard development has been affected by the Circuit Breaker imposed by Singapore Government since 7 April 2020. Construction at site has slowly resumed recently but the resumption of work progress to pre-COVID-19 pandemic level may take  some time. The Group will continue to ensure strict adherence to health and safety guidelines whilst taking measures to catch up on the construction progress. The completion for this development is expected to be in 2023.

IOIPG remains optimistic on its longer-term prospects as its developments and assets are situated in strategic locations with good infrastructure networks and amenities, and supported by experienced and professional management teams.