IOI Property Current Quarter Profits Dip 16% To RM302 Million

IOI Property Group recorded revenue of RM715.9 million for the current year quarter, which is RM57.3 million or 9% higher than the preceding year corresponding quarter of RM658.6 million. The increase in revenue is mainly contributed by all business segments other than the property development segment which underwent a decrease of 3%.

In the current year quarter, the Group recognised property development costs written down of RM60.2 million attributable to the development projects in IOI Palm International Parkhouse, Xiang’An, and fair value gain on investment properties of RM147.3 million mainly attributable to the retail malls in Malaysia operations. Excluding property development costs written down, fair value gain on investment properties and net foreign currency translation gain on foreign denominated borrowings and deposits, the Group’s underlying profit before taxation (“PBT”) of RM302.8 million for the current year quarter is RM56.8 million or 16% lower than the preceding year corresponding quarter of RM359.6 million. The decrease in underlying PBT is mainly attributable to a lower share of results of joint ventures in the current year quarter as the preceding year’s corresponding quarter share of joint ventures had included an amount of RM136.2 million which arose from the reversal of write-down value of Cape Royale in Singapore.

As for the performance of the current year to date against the preceding year’s corresponding period, the Group recorded revenue of RM2.6 billion, which is RM101.7 million or 4% higher than the preceding year’s corresponding period. This is mainly supported by the commencement of recurring lease income from IOI Mall, Xiamen as well as a strong recovery in the Malaysia mall operations and hospitality and leisure segment arising from the relaxation of travel restrictions and opening of international borders.

The Group’s underlying PBT of RM1.2 billion in the current year to date, is RM2 million or 1% higher than the preceding year corresponding period. The Group recorded higher underlying PBT mainly due to better financial performance from property development and property investment segments but was mitigated by a higher share of associate and joint ventures profit arising from a sale of land of an associate and reversal of inventories written down of Cape Royale in Singapore during the preceding year corresponding period.

Source: Business Today