IOI Properties Q1’23 net profit jumped three-fold to RM640m

PETALING JAYA: IOI Properties Group Bhd (IOIPG) reported net profit for the first quarter ended Sept 30, 2022 (Q1’23) rose three-fold to RM640.29 million from RM208.81 million in the corresponding quarter last year mainly due to the low base effect and partially contributed by the commencement of recurring leasing income from IOI City Mall phase 2 following business commencement in August 2022.

Its revenue in Q1’23 increased 60% to RM691.5 million compared to RM431.77 million in the corresponding quarter last year, attributed to better performances across all business segments particularly the hospitality and leisure segments which saw a recovery of more than 400% in revenue.

In the property development segment, the group achieved a revenue of RM529.9 million, a 46% increase compared to the preceding year corresponding quarter attributable to higher sales contributions from Malaysia operations despite the property industry being impacted by inflationary pressures and global supply chain disruptions.

The group’s property investment segment’s revenue rose 86% to RM110.1 million compared with the preceding year’s corresponding quarter.

For the group’s hospitality and leisure segment, revenue increased to RM48.7 million from RM7.6 million on the back of resilient domestic tourism.

IOIPG CEO Datuk Voon Tin Yow (pic) said he is confident that the group is on track to achieve targets in FY23 as business segments are positioned for sustained growth.

“The rise in interest rates and cost of living has increased the demand for affordably priced homes within the housing market. Hence, our product range will remain flexible to meet the rising demand in this space,” added Voon.

The group is confident that earnings from its property investment portfolios as well as its pipeline of new projects and launches will continue to lay a foundation to ensure the sustainability of the group’s earnings across all business segments for the long-term.

In Singapore, IOI Central Boulevard Towers is slated for completion in 2023 and has secured international anchor tenants. Meanwhile, the group has launched marketing campaign in line with new financial policies rolled out by the Chinese government to drive sales of its developments in Xiamen, China.

Moving forward, the group said it remains cognisant of global challenges as it navigates through headwinds across Malaysia, Singapore and China.

Source: The Sun