IOIProp planning for RM2bil worth of launches in Malaysia in FY26
PETALING JAYA: IOI Properties Group Bhd (IOIProp), which released results for its fourth quarter ended June 30 (4Q25) last Tuesday, is expected to launch RM2bil worth of properties in Malaysia, with the company’s property investment segment continuing to anchor earnings.
Analysts have mixed views on IOIProp’s outlook following the 4Q25 results, which saw net profit drop by 47% year-on-year despite reporting 14% increase in revenue, due to lower fair-value gains from investment properties as well as higher interest expense.
The company has declared an interim dividend of eight sen per share.
Hong Leong Investment Bank Research, which has maintained a “buy” recommendation with an unchanged target price of RM4.05, expects “a sharper earnings recovery than what the market is currently pricing in”, while the planned listing for a real estate investment trust (REIT) with the company’s local assets should unlock value.
MBSB Research sees few near-term catalysts to the company while net gearing remains elevated at 0.7 times.
Due to weak earnings visibility, the research house has revised its financial year 2026 (FY26) and FY27 earnings forecasts for the developer downwards by 38% and 32%, respectively.
The research house maintained a “neutral” call on the stock but revised the target price to RM2.09 from RM2.15.
“Going forward, new sales should remain within the RM2bil range with projects in Malaysia contributing to new sales as W Residence Marina View in Singapore has yet to be officially launched.
“Meanwhile, unbilled sales increased to RM851mil in 4Q25 from RM718mil in 3Q25,” the research house added.
TA Research, which maintained a “buy” call on the stock with unchanged target price of RM2.78, said the Malaysian pipeline of projects for FY26 features high-rise developments in Bandar Puteri Puchong, 16 Sierra and IOI Resort City, alongside landed residential projects in Kulai, Johor, that continue to enjoy resilient demand.
“The property investment segment will continue to anchor earnings, supported by stable recurring income and a strong 6% portfolio rental revision, prompting an upward revision in retail mall valuations,” it said, adding that the hospitality and leisure segment would benefit from Visit Malaysia 2026 while at the same time experiencing persistent macro challenges for the newly opened Sheraton Grand Xiamen Jimei in China.
The research house also noted that the company has incorporated a new subsidiary to oversee the REIT listing, in which Maybank Investment Bank Bhd and AmInvestment Bank Bhd have been appointed as joint principal advisers, with management guiding for a listing within 12 to 18 months.