China, Singapore projects drive IOI Properties’ 2nd quarter earnings
Source: The Sun
PETALING JAYA: IOI Properties Group Bhd’s net profit for the second quarter ended Dec 31, 2018 more than doubled to RM214.86 million from RM97.45 million a year ago due to higher operating profit in China and higher share of profit in Singapore.
Revenue for the quarter fell 4.2% to RM666.15 million from RM695.41 million a year ago.
The property development segment’s operating profit surged 70% to RM222.2 million due to higher profit contribution from projects in China.
The property investment segment reported an 11% growth in operating profit toRM53.7 million, due to higher occupancy and rental rates secured by the retail and office segments.
Meanwhile, the hospitality and leisure segment’s operating profit fell 16% to RM8.8 million.
Property development in China is expected to continue its positive impact on the group’s financial results, as the group proceeds with its future residential development comprising mid to high rise condominium and town villas in IOI Palm City, Xiamen.
In Singapore, its joint venture project South Beach Residences is expected to generate positive impact arising from positive sales response.
In the property investment segment, the group’s portfolio of investment properties continue to enjoy healthy occupancy levels and good rental yields, generating a steady stream of recurring income for the group.