IOI Properties reports improved results for first quarter
Source: The Sun Daily
PETALING JAYA: IOI Properties Group Bhd’s net profit rose by 22% to RM136.64 million for its first quarter ended Sept 30, 2019 from RM111.96 million reported in the same quarter of the previous year attributed to higher operating profits from its property development business.
For the quarter, the group’s revenue slipped by 2.3% to RM540.32 million from RM552.81 million registered previously, mainly due to lower contribution from the property development segment.
According to the group’s Bursa disclosure, its property development business saw operating profits increased by 11% to RM181.6 million on higher profits from development projects in China and the Klang Valley, as well as over provision of expenses in the previous financial year.
As for the property investment business, operating profits increased by 10% to RM55 million contributed by higher profit contribution from the retail sub segment arising from higher occupancy rate and average rental rate post refit exercise carried out by IOI Mall, Puchong.
On the other hand, the group’s hospitality and leisure business saw operating profits fall by 5% to RM6.2 million on the back of lower performance from the leisure sub-segment.
Moving forward, in Malaysia, the group will continue to tap on the Home Ownership Campaign coupled with ongoing marketing campaigns targeting both the traditional and digital platforms audience to create visibility for its developments.
“Echoing the success from the recent launch of affordable high-rise residential development in Warisan Puteri, the group will continue to focus on the affordable housing segment for our Malaysian operations,” it said in its filing.
The group said it is also remaining optimistic on its project in China, despite the uncertainties stemming from the US-China trade conflict and the impact of the cooling measures imposed by the Chinese government on the property market.
As for its property investment segment, it reported that its retail properties continued to enjoy healthy occupancy levels with good rental yields, generating a recurring income stream for the group.
Furthermore, it noted that the construction of the group’s future investment properties such as Central Boulevard in Singapore and IOI City Mall Phase 2 in Malaysia are progressing well.