IOIProp said the IOI City Mall in Putrajaya continues to record high occupancy rates supported by strong visitor traffic.
PETALING JAYA: IOI Properties Group Bhd
(IOIProp) says robust growth in its property investment, and hospitality and leisure segments buoyed its recent financial results for the nine months of its financial ending June 30.
The two segments, which house the malls, office leasing, and hotels businesses registered year-on-year (y-o-y) revenue growth of 56% and 84%, respectively.
This mitigated the softer performance of the property-development segment, which saw a 26% decline in revenue.
IOIProp said the IOI City Mall in Putrajaya continues to record high occupancy rates supported by strong visitor traffic.
On the office-space front, IOI City Tower One, a premium Grade-A office building in Putrajaya, has made significant progress by achieving close to 100% in leasing commitments, it said.
“These positive developments underscore the group’s expertise in managing its investment properties.
“The group’s retail and office assets are underpinned by strong recurring income,” IOIProp said.
However, pre-tax profit for the period was down by some 35% y-o-y to RM430.9mil, the company said.
The muted performance was primarily attributed to higher interest expense following the commencement of operations of IOI Central Boulevard Towers in Singapore, the property developer said in its earnings announcement.
IOI Central Boulevard Towers is a significant new office development in Singapore’s Marina Bay area, comprising two towers: the 48-storey West Tower and the 16-storey East Tower, along with a seven-story podium.
“While challenges in the global business environment and trade uncertainty persist, we remain confident that our diversified product offerings across three countries, sizeable recurring income stream from our established property investment portfolio, and the favourable outlook of the hospitality and leisure segment provides the group with a solid foundation for sustained earnings ahead,” IOIProp’s group chief executive officer Lee Yeow Seng said in a statement.
For its third quarter ended March 31, IOIProp reported net profit of RM76.13mil compared with RM220.21mil in the same quarter a year ago.
Revenue for the quarter came in at RM755.16mil compared with RM902.19mil reported in the same quarter a year ago.
