IOI Properties Q2 revenue jumps 34%
IOI Properties Group Berhad (“IOIPG”), a leading property player with an impressive business portfolio in Malaysia as well as in Singapore and China, posted a strong set of results for the current quarter ended 31 December 2016.
The Group’s Q2 revenue jumped 34% to RM1,194.7 million from RM894.4 million in the same quarter of the preceding year. The Group saw a 23% hike in operating profit of RM393.6 million for the current quarter as compared to the preceding year corresponding quarter. The Group’s increase in revenue and operating profit is contributed by its property development, property investment and leisure & hospitality business segments.
The Group’s property development segment revenue rose 36% to RM1,068.3 million and achieved an operating profit of RM337.5 million, an increase of 23% as compared to the same quarter a year ago. The increase in both revenue and operating profit reflects the higher sales take-up rates for its projects in Singapore as well as favourable take-up rates from projects in IOI Resort City Putrajaya, 16 Sierra and Bandar Puteri Bangi.
In property investment, the Group saw an increase in revenue of 12% from RM69.0 million to RM77.5 million and a 17% increase in operating profit from RM37.7 million to RM43.9 million. This was achieved with the increase of average occupancy rates and upward rate revision from tenancy renewal of IOI City Mall which has contributed vastly to the Group’s property investment segment. The strategic locations of the Group’s retail and office developments within matured townships and high growth corridors have enabled the Group’s investment portfolio to enjoy healthy occupancy rates and rental yields.
Meanwhile, the Group’s leisure and hospitality segment posted a 24% hike in revenue to RM47.5 million and a 44% hike in operating profit to RM11.1 million; with the increase in revenue mainly derived from its collection of world-class renowned hotels namely Four Points by Sheraton, Puchong and Le Meridien Putrajaya, with the latter commencing its business operations in August 2016.
The Group’s current year to date revenue rose 41% to RM2,094.2 million while operating profit jumped 25% to RM664.0 million compared to its preceding year corresponding period.
IOIPG Chief Executive Officer Lee Yeow Seng said, “The demand for properties within well-planned and sustainable developments will continue to be supported by a young population demographic, conducive interest rate environment and urbanization. The Group’s property development segment is set to contribute positively to its performance evidenced by the demand for mid-priced range properties located at IOI Resort City, Bandar Puteri Bangi and Warisan Puteri @ Sepang with accessibility to good amenities.”
“In the international front, the Group’s performance has proven that it is on the right track with development projects in Singapore and Xiamen progressing well; and are expected to continue contributing positively to the Group’s results,” he said.
“With our sizable land bank in strategic locations, a good delivery track record and our ability to adapt to market demand, the Group is expected to perform well in the remaining financial period,” added Lee Yeow Seng.