IOIPG revenue rises 41% to RM969mil for 1Q26

PETALING JAYA: IOI Properties Group Bhd (IOIPG) expects its financial performance for the year ending June 30, 2026 (FY26) to remain satisfactory, supported by its diversified operations, recent acquisition, and recurring income streams.

Group chief executive officer Lee Yeow Seng said the group remains focused on delivering value across its portfolio and seizing growth opportunities.

“While challenges in the global economic environment may continue to persist, the favourable interest rate outlook in Singapore and positive outlook of the hospitality sector ahead of Visit Malaysia 2026 augurs well for the group,” he noted in a statement.

“Barring any unforeseen events, the group’s financial performance for the year is expected to be satisfactory.”

For the first quarter ended Sept 30, 2025 (1Q26), IOIPG’s revenue rose 40.8% to RM968.7mil from RM687.85mil a year earlier. This was driven by strong growth across all three core segments – property development, property investment, and hospitality and leisure – which increased 47%, 31% and 44%, respectively.

Net profit for the quarter surged to RM664.33mil from RM69.17mil in 1Q25, due to a one-off remeasurement gain of RM502.8mil following IOIPG’s acquisition of the remaining 50.1% stake in Scottsdale Properties Pte Ltd, giving it full control over the company. The acquisition was completed, resulting in the full consolidation of Scottsdale’s financial performance into the group’s results on Sept 1, 2025

Scottsdale owns South Beach Consortium Pte Ltd, which holds the leasehold title to South Beach Tower, South Beach Avenue, and the JW Marriott Hotel Singapore South Beach – excluding the residential components.

Still, excluding this remeasurement gain, the group’s underlying profit before tax rose 88% to RM250.9mil from RM133.7mil in 1Q25.

In 1Q26, IOIPG achieved RM473.6mil in property sales, with local projects contributing RM384.2mil or 81% of total sales, while projects in China contributed RM89.4mil, or 19%.

In Malaysia, sales were primarily driven by the Klang Valley region at RM243.4mil, while the Johor region registered RM141.7mil in sales.

Meanwhile, IOIPG said its property investment segment delivered “resilient” performance, supported by high occupancy rates across the group’s retail malls and offices.

In Malaysia, IOI City Mall Phase 2, which commenced operations in August 2022 is currently undergoing its first major rental reversion cycle, it said.

“Moreover, IOI City Tower One, which has achieved full commitment rate, is expected to accelerate footfall for the mall and further enhance the group’s recurring income stream in the near future.”