Singapore projects to fuel IOIPG earnings
PETALING JAYA: IOI Properties Group Bhd (IOIPG) is poised for a stronger earnings trajectory over the next 18 months, as its enlarged Singapore investment portfolio ramps up, industrial launches accelerate and lease renewals rise, analysts say.
The group has started its financial year ending June 30, 2026, (FY26) on a strong footing, supported by sales traction and improving investment returns.
TA Research said IOIPG achieved new sales equivalent to 24% of its RM2bil full-year sales target in the first quarter of FY26 (1Q26), keeping it on course to meet guidance.
The research house added that the developer launched RM911mil worth of projects during the quarter, with 63% comprising industrial products across its industrial parks in Banting, Selangor and Kulai, Johor, as management seeks to capitalise on strong demand in the segment.
“Management reiterated that residential developments would remain the group’s core focus, with a targeted sales mix of 70:30 between residential and commercial (including industrial) products,” the research house said.
TA Research maintained its “buy” rating with an unchanged target price of RM2.78 for IOIPG.
The research house also pointed to the recent debut of W Residences Marina View in Singapore, and emphasised improving leasing momentum at IOI Central Boulevard Towers (IOICBT).
“IOICBT continued to record strong leasing momentum, with its commitment rate rising to 95% from 88% in the previous quarter, while physical occupancy reached 70% as of end October,” it said, adding that lower funding costs mean IOICBT is expected to turn from an earnings drag into an earnings contributor from the second half of FY26.
Hong Leong Investment Bank Research (HLIB Research) expects domestic demand to remain resilient, aided by Johor industrial and residential strength and a land sale gain in Melaka in FY26.
The research house observed that IOICBT has achieved an impressive occupancy rate, positioning it to deliver its maiden profit by 2Q26, supported by the full consolidation of South Beach Tower and JW Marriott Singapore.
HLIB Research maintained its “buy” recommendation with an unchanged target price of RM4.15, citing IOIPG’s “rare diversified market exposure” and the rising visibility of its Singapore assets.
MBSB Research said IOIPG’s 1Q26 core net income of RM162.3mil was within consensus but ahead of its forecasts, driven by lower-than-expected financing costs and stronger investment contributions.
“While earnings are is expected to be better in FY26, we are cautious on the high net gearing of 0.95 times,” the research house said.
It maintained a “neutral” call with a higher target price of RM2.30 for IOIPG.
Meanwhile, Kenanga Research highlighted a deeper industrial pipeline, shrinking inventories and improving committed occupancy at IOICBT.
It raised its earnings forecasts for IOIPG and said lower interest charges should help offset gearing pressures.
Kenanga Research maintained its “market perform” rating on the company with a higher target price of RM2.30, while flagging potential headwinds should Singapore rates rise.
IOIPG posted a net profit of RM664.33mil for 1Q26, up more than nine-fold year-on-year, boosted by a one-off remeasurement gain from the full acquisition of Scottsdale Properties Pte Ltd in Singapore alongside firmer underlying contributions.
Its quarterly revenue jumped 40.8% to RM968.7mil from RM687.8mil a year earlier.
IOIPG said the improvement was driven by the robust performance across all three core business segments, with the property development, property investment and hospitality and leisure segments registering notable growth of 47%, 31% and 44%, respectively.