IOI Properties Group Continue to Demonstrate Resilience Amid Headwinds

Press Release: IOI Properties Group Continue to Demonstrate Resilience Amid Headwinds 

▪ 6M FY2025 Overall Revenue Grew by 13% to RM1.42 billion 

▪ 53% Growth in Property Investment Segment Revenue 

▪ Hospitality and Leisure Segment Continue Capitalising on Tourism Activities 

Putrajaya – IOI Properties Group Berhad (“IOIPG” or “Group”) registered a revenue of RM1.42 billion for  the first half of financial year 2025 (“6M FY2025”), which ended on 31 December 2024. While revenue  from the Property Development segment declined by 14%, this was offset by the robust performance of  the Property Investment segment, which continued its growth trajectory with an impressive 53% growth.  Additionally, the Hospitality & Leisure segment more than doubled its revenue, primarily driven by  contributions from three new additions to the portfolio, namely Moxy Hotel, W Kuala Lumpur and  Courtyard by Marriott Penang. 

Profit before tax (“PBT”) in 6M FY2025 declined by 30% to RM284.5 million, compared to the  RM405.0 million reported in 6M FY2024. The softer performance was primarily attributed to the interest expense from IOI Central Boulevard Towers. Nonetheless, the impact of the higher interest expense was moderated by the stronger performance of its Property Investment and Hospitality & Leisure segments. This  performance underscores the resilience of the Group’s diversified portfolio, which enables it to sustain its  performance amid global economic uncertainties. 

“While economic uncertainty lingers, the declining interest rates outlook bodes well for the Group. Our  diversified product offerings across three countries, sizeable recurring income stream from our  established property investment portfolio, and the positive outlook of the hospitality and leisure  segment will provide the Group with a strong foundation to ensure sustained earnings ahead.”  highlighted Mr. Lee Yeow Seng, Group Chief Executive Officer of IOIPG. 

Moxy Putrajaya, the first hotel launched for the Moxy brand in Malaysia with 480 rooms.

IOI Central Boulevard Towers features two 16-storey and 48-storey premium Grade A office towers with a total of 1.29 million sq ft in net lettable area.

In 6M FY2025, the Property Development segment achieved sales of RM692.9 million, with local projects  contributing RM625.1 million or 90% of total sales. In Malaysia, sales were primarily driven by the Klang  Valley region at RM418.8 million, led by our thriving and matured integrated developments, namely IOI  Resort City in Putrajaya and Bandar Puteri Puchong in Selangor. Meanwhile, the Johor region registered  RM196.8 million in sales, contributed by our vibrant townships, Bandar Putra Kulai and Taman Kempas  Utama.  

Mr. Lee said, “On the local front, we will continue to monitor the market and review the timelines of our  launches to strike a balance for positive take-up rates while maintaining sustained earnings.  Additionally, we are seeing growing demand for IOI Industrial Park Iskandar Malaysia following the  signing of the Johor-Singapore Special Economic Zone. Other than that, the Group has received multiple  interest for industrial park in Klang Valley, specifically for IOI Industrial Park Banting. We will continue  to evaluate and capitalise on emerging opportunities by strategically aligning our offerings with evolving  market demands.” 

The Property Investment segment continues to deliver resilient performance, underpinned by high  committed occupancy and strong footfall of IOI shopping malls. In December 2024, the Group successfully  completed the acquisition of Tropicana Gardens Mall and rebranded it as IOI Mall Damansara (“IMD”).  With its prime location and the Group’s proven track record in retail management, IMD is expected to  further enhance the segment’s long-term prospects.  

The Hospitality & Leisure segment continues to benefit from increased tourism activities, driven by  Tourism Malaysia’s initiatives. In 2024, Malaysia recorded 25.0 million in tourist arrivals, achieving 92% of  its full year target of 27.3 million, and marking a 24% increase from the 20.1 million in 2023. For 2025,  Malaysia has set a target of 31.4 million in tourist arrivals and allocated additional funds for tourism  promotion. These initiatives, including the Group’s Visit IOI Resort City campaign launched in November  2024, are expected to drive further growth in tourism activities and footfall to our integrated township,  benefiting our Hospitality and Leisure segment while positioning it for sustained performance ahead. 

Over in the People’s Republic of China (“PRC”), economic challenges continue to persist despite efforts by  the central bank to revitalise the property sector. The Group remains focused on clearing completed  inventories at IOI Palm City and IOI Palm International Parkhouse in Xiamen, allowing swift monetisation  into cash flow to support our capital requirements. Meanwhile, the 370-room Sheraton Grand Xiamen  hotel, which completed its construction November 2024, is set to open its doors in March 2025. This  addition is expected to complement IOI Mall Xiamen and IOI Business Park Xiamen, strengthening the  Group’s recurring income stream. 

Over in Singapore, the Group’s proactive efforts and the improving market sentiment of the office segment  have driven IOI Central Boulevard Towers’ commitment rate to 75%, a significant increase from  approximately 39% a year ago. The strong leasing momentum was further supported by the final  Temporary Occupation Permit obtained in December 2024. Moving forward, we remain focused on  achieving a stronger growth for this sub-segment while preparing for the development of  W Residences Singapore – Marina View. 

–END-

Do not miss all the important happenings whether in property or other investments! It takes 5 seconds to sign up. Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER). 

Alternatively, Follow me on Telegram here.

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.