IOI Properties net profit surges 93% to RM115.4mil in 3Q

IOI Properties chief executive officer Datuk Voon Tin Yow

PETALING JAYA: IOI Properties Bhd (IOIPG) recorded sales with contracts exchanged of RM1.37bil for in the first nine months of financial year ending June 30, 2023 (FY23).

“Local projects contributed RM1.14bil, which is 83% of the total sales while overseas projects from China and Singapore contributed RM226.5mil, or 17% of the total sales,” the developer said in a statement.

In Malaysia, the sales secured were largely from the Klang Valley region at RM645.6mil, led by its integrated development at IOI Resort City in Putrajaya with RM164.6mil and township at Bandar Puteri Puchong in Selangor with RM137.5mil of sales. Johor contributed sales of RM457.4mil.

“The recent increase in overnight policy rate (OPR) has led to cumulative 125 basis points hike since May 2022 and notwithstanding the softened market, the group will continue to enhance our developments and focus on offering mid-priced range residential units, targeting owner-occupiers whom are less sensitive to OPR hike.

“In terms of placemaking, the long-awaited 16 Sierra mass rapid transit (MRT) Station is now operational and it is expected to provide added convenience and greater connectivity to the community of 16 Sierra, Puchong,” chief executive officer Datuk Voon Tin Yow said.

“In addition to the good take-up rate on our recent launches, the group’s completed inventories have reduced by RM543.9mil over the last nine months. The group remains focused on reducing completed inventories further with up-coming promotional sales campaigns,” he added.

In the third quarter ended March 31, IOIPG’s net profit jumped 93.2% to RM115.4mil, or earnings per share of 2.10 sen from RM59.7mil, or 1.09 sen a year ago.

Revenue, however, was lower at RM564.7mil from RM737.8mnil previously.

For the nine months to March 31, the developer posted a net profit RM1.16bil on revenue of RM1.93bil.

IOIPG said since its opening in August 2022, IOI City Mall Phase 2 had successfully capitalised on the resurgence of retail, entertainment and dining activities where footfall has been steadily growing and the secured occupancy rate has reached 84% within seven months of its commencement.

“Our property investment segment continues to outperform, demonstrated by the strong anchor tenants secured and the influx of specialty stores in the pipeline for IOI City Mall 2. This will augur well for Malaysia’s largest shopping mall,” Voon said.

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