IOI PROPERTIES Q1 NET PROFIT CLIMBS 26%
PETALING JAYA: Net profit of IOI Properties Group Bhd has climbed 26% to RM251.0mil for the first quarter (Q1) of FY 2018 ended Sep 30, 2017.
It recorded an operating profit of RM329.0mil, which is 22% higher than the preceding year corresponding quarter, on the back of RM870.0mil in revenue. The increase was contributed by the group's three main business segments in property development, property investment, and leisure and hospitality.
For the property development segment, the group recorded operating profit of RM270.2mil in the quarter under review, an increase of RM46.7mil or 21% as compared to the preceding year corresponding quarter.
According to the statement, the increased contribution from the property investment segment was derived mainly from higher occupancy and rental rates.
The group has several ongoing development projects in high-growth areas in the Klang Valley such as Par 3 in IOI Resort City, The Strata in Bandar Puteri Bangi and Zentro Residences in 16 Sierra@Puchong South.
“We expect the current challenging property market conditions to continue its steady recovery into 2018 with an increased demand for sustainable lifestyle developments in well-established growth areas.
“With its focus on quality and value creation; and its sizeable landbank in high-growth corridors, the group is well-positioned to adapt to these market demands,” said IOIPG chief executive officer Lee Yeow Seng.
“On the international front, the group’s key developments are expected to commence soon notably the development of Grade A office towers and retail podium in the prime Central Business District located within Marina Bay, Singapore and a mixed development in Xiang An business district of Xiamen, People's Republic of China,” he added.