IOI Properties Q4 Net Profit Increases Driven by Rising Real Estate Investment Revenue

KUALA LUMPUR (22 Aug): Net profit of IOI Properties Group Bhd jumped 147% to RM292.48 million in the fourth quarter ended June 30, 2022 (4QFY22), from RM118.37 million a year ago earlier. Earnings per share increased from 2.15 sen to 5.31 sen.

Explaining the higher profit, the group said it recognized impaired property development costs of RM60.2 million, attributable to development projects in IOI Palm International Parkhouse in Xiang’An, China, and a fair value gain. on investment properties of RM147.3 million, mainly attributable to shopping centers in Malaysia.

Quarterly revenue rose 8.7% to RM715.94 million from RM658.65 million, driven by property investment as well as the hospitality and leisure segment, the group said in a statement. a file from Bursa Malaysia.

IOI Properties said revenue from the property investment segment jumped 89% to RM108.8 million from RM57.5 million, while operating profit soared 109% to 38 RM.2 million vs. RM18.3 million. This is due to the start of recurring rental income from the IOI Mall, Xiamen as well as the improvement in mall traffic in Malaysia.

Hospitality and leisure segment revenue jumped 124% to RM42.4m from RM18.9m, and operating loss decreased 53% to 5.3m of RM from RM11.3m, mainly due to robust domestic demand following the easing in travel. restrictions and reopening of international borders, coupled with the festive season.

For FY22 as a whole, IOI Properties net profit increased by 4.02% to RM686.74m from RM660.21m in FY21 as revenue increased by 4.09% to RM2.59 billion from RM2.49 billion.

The group recorded sales of RM1.9 billion in FY22, with Klang Valley accounting for 48%.

As FY23 approaches, IOI Properties said the operating environment inside and outside Malaysia will continue to face significant headwinds.

“Our ongoing projects and the new launches planned in the pipeline will provide us with a solid foundation to ensure the sustainability of the group’s profits,” he said.

IOI Properties’ share price closed down 1.52% or 1.5 sen at 97.5 sen on Monday (August 22), giving the group a market capitalization of RM5.37 billion.