IOI Properties’ Q4 earnings slip 3%

Request for photos of IOI Corporation building, IOI Putrajaya, IOI City Mall and IOI Properties to update for print and online in Putrajaya. MOHD SAHAR MISNI/The Star *** Local Caption ***

KUALA LUMPUR: IOI Properties Group Bhd’s earnings, which had grown in the first three quarters of the financial year ended June 30, 2016, faltered in the final three months due to a higher tax expense.

In a filing with Bursa Malaysia, the property development and investment firm said its earnings slipped 3% to RM389.41mil in the fourth quarter despite 45.2% higher revenue of RM891.72mil. In contrast, its pre-tax profit grew 5% to RM510.58mil.

After excluding fair value gain on investment properties of RM60.1mil in the quarter under review as well as the fair value gain of RM138.3mil a year earlier, the group’s operating profit improved 49% to RM107.1mil.

“The effective tax rate of 25% for the current quarter (Q4) is higher than the prevailing statutory tax rate of 24%. The higher effective tax rate is mainly due to higher tax rate in foreign operation,” it said of the 36.3% higher tax imposed.

All its three main operating segments -- property development, property investment and leisure & hospitality -- contributed to the bertter results.

IOI Properties’ annual earnings, meawhile, jumped 21.3% to RM1.08bil as revenue surged 58.7% to RM3.02bil.

The board has proposed a final dividend of 8 sen per share, the same as in the previous year’s corresponding period.