It’s always good to follow the listed developers’ results. With the current slow market, it is a notable result if the developer is still reporting good profits. If every listed property developers are reporting losses, I think it is a certainty that the market is in big trouble. Another one has just released their latest quarterly result. IOI Properties Group Berhad (“IOIPG”) has achieved a higher net profit of RM251 million. This is 26 percent higher than the same period last year. Read on their Press Release as follows:
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Net profit of IOI Properties Group Berhad (“IOIPG”) has climbed 26% to RM251.0 million for the first quarter (Q1) of FY 2018 ended 30 September 2017. It recorded an operating profit of RM329.0 million, which is 22% higher than the preceding year corresponding quarter, on the back of RM870.0 million in revenue; with the increase contributed by the Group’s three main business segments in property development, property investment, and leisure and hospitality. The Group continues to deliver better performance amidst the current challenging market conditions.
For the property development segment, the Group recorded operating profit of RM270.2 million in the quarter under review, an increase of RM46.7 million or 21% as compared to the preceding year corresponding quarter. The increase is derived from improvement in sales take-up rate in Malaysia particularly in the Klang Valley and Johor. The increased contribution from the property investment segment was derived mainly from higher occupancy and rental rates.
The Group’s leisure and hospitality segment registered RM7.5 million in operating profit which was 161% higher than the preceding year corresponding quarter. The sterling performance of this segment was mainly derived from Le Meridien Putrajaya which commenced its business operations in August 2016.
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; and upcoming in the pipeline for 2018 is IOI Rio City in Bandar Puteri Puchong
and The Gems in IOI Resort City.
The Group’s portfolio of investment properties located in strategic and high-growth urban areas are expected to continue sustaining healthy occupancy rates and good rental yields. IOI City Mall in Putrajaya and IOI Mall Puchong have achieved occupancy rates of almost 100%. The Group has started work on the second phase of IOI City Mall to add another one million sq. ft. of retail space
to the existing mall, which has achieved almost 100% occupancy. The Group will continue to manage its investment portfolio to generate a steady stream of recurring revenue despite the competitive environment for leasing of office and retail space and a growing trend in online retailing.
IOIPG Chief Executive Officer Lee Yeow Seng said, “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.”
“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 said.
IOI Properties Group Berhad
Spanning more than three decades in the property development industry, IOI Properties Group Berhad (“IOIPG”) is one of the leading award-winning public-listed property developers in Malaysia. Over the years, it has successfully developed sustainable townships and commercial enclaves in sought-after regions of Klang Valley such as IOI Resort City, Bandar Puteri Puchong, 16 Sierra and Bandar Puteri Bangi; and has established a strong presence in Penang (northern region) as well as Johor in the southern region of Malaysia. In the international scene, IOI Properties has achieved notable success in Singapore and the People’s Republic of China.
Apart from being an established township developer, IOIPG is also known for being one of the few integrated property developers that builds and manages its investment properties such as hotels, golf courses, shopping malls and office buildings.
The Group has a total development landbank of approximately 10,000 acres. Under its investment property portfolio, it manages a total of 6.7 million sq. ft. of lettable area, comprising retail, purpose built office and others. These properties are mostly located in high-growth areas, which are wellconnected, accessible and are centred within high population concentration. The Group owns five hotels with 4- to 5-star rating offering a total of more than 1,800 keys namely Putrajaya Marriott Hotel, Palm Garden Hotel, Four Points by Sheraton Puchong, Le Meridien Putrajaya and JW Marriott Hotel Singapore South Beach. The Group’s golf courses include Palm Garden Golf Club in IOI Resort City and Palm Villa Golf and Country Resort in Johor.
Corporate website: http://www.ioiproperties.com.my
For media enquiries, please contact:
Belinda Liew Corporate Communication Manager T: +603-8947 8888 (Ext: 6271) F: +603-8947 8958 email@example.com
Chan Ching Thut Corporate Communication Senior Executive T: +603-8947 8888 (Ext: 1067) F: +603-8947 8958 firstname.lastname@example.org