IOI Properties Sees Strong Recovery Across All Sectors

KUALA LUMPUR: IOI Properties Group Bhd (IOI Properties) has record performance improvements in all sectors under its portfolio for Q3 2022. The positive outcome is attributed to the economy’s recovery.

“We foresee robust recovery of all sectors of the economy as we reopen our borders and transition into the endemic phase. Therefore, we expect an increase in consumer confidence nationwide that will generate a steady rise of demand within the property market,” said IOI Properties chief executive officer Datuk Voon Tin Yow. 

The group has been taking on proactive measures to drive sales of its mid-priced range of products by leveraging digital marketing capabilities and aggressive campaigns. Thus far, the digital marketing efforts and innovative solutions continue to serve as key drivers of value propositions for mall tenants and hotel guests. 

Following the positive performance, IOI Properties anticipates a recovery to pre-pandemic levels for its hospitality and retail segments. To maintain the upbeat momentum, IOI Properties is continuing to provide a safe environment for its hotel guests and staff.

The property development sector registered an increase of 25% in revenue compared to the preceding year, credited to the progression of construction activities for ongoing developments and the higher number of vacant possession of completed projects that had been disrupted by the lockdown.

However, even with the competitive environment in Malaysia, IOI Properties has experienced a decrease in the overall occupancy and rental rates. The global economy has been facing persistent supply-chain disruptions and labour market challenges caused by the pandemic, further exacerbated by the current military conflict between Russia and Ukraine.

Across the border, IOI Properties has a new acquisition of a mixed-use development site in Singapore, comprising residential and hotel components in the Marina Bay area. IOI Properties’ mall operations in Xiamen, China are also facing new challenges arising from the strict operating procedures and movement controls implemented by the Chinese government. To maintain occupancy rates, IOI Properties is looking to adopt an active and pragmatic tenant retention strategy.

Meanwhile , IOI Properties achieved a revenue of RM737.8mil for Q3 2022, which is an increase of 27% compared to the preceding year's corresponding quarter. In the property development segment, the group registered an increase of 25% in revenue to RM605.9mil and an increase of 45% in operating profit to RM265mil compared to preceding year corresponding quarter. 

The hike in revenue and operating profit in the current year quarter is mainly attributable to further progress made in construction activities for ongoing developments and the higher number of vacant possession of completed projects that had been disrupted by the lockdown in Malaysia in the previous quarters.

The group’s property investment segment recorded a 38% rise in revenue to RM99.7mil and a 48% increase of operating profit to RM48.7mil for Q3 FY2022 compared to the preceding year’s corresponding quarter. 

Source: StarProperty