IOI Properties’ 4Q revenue surges 34% y-o-y, driven mainly by Singapore development

PETALING JAYA (Aug 29): IOI Properties Group Bhd 4Q2017 revenue has registered a 34% year-on-year (y-o-y) jump to RM1.2 billion, driven mainly by its Singapore project.

According to a press release yesterday, after excluding the fair value gain on investment properties of RM48.8 million, the group’s operating profit for the current quarter is RM486.4 million, 48% higher than same quarter last year.

IOI Properties posted a cumulative revenue of RM4.19 billion for the current year-to-date. The increase in both revenue and operating profit was a result of solid performance from its three business segments: property development, property investment; and leisure and hospitality.

The property development segment registered a revenue of RM1.08 billion, which saw an increase of 37% compared with the preceding year’s corresponding quarter.

“The increase was mainly due to the strong take-up rates in its Singapore project, The Trilinq, which was completed during the quarter,” said the company.

Meanwhile, IOI Properties’ property investment segment saw revenue increasing by 8% from RM71.7 million to RM77.4 million, driven mainly by the increased in average occupancy and rental rates in both retail and office segments.

“A revenue increase of RM40.9 million, which is RM7.4 million or 22% higher than the preceding year’s corresponding quarter, was posted by the leisure and hospitality segment, mainly contributed by Le Meridien Putrajaya, which commenced operations in August 2016,” said the company.

Moving forward, the group will continue to focus on sustainable transit-oriented developments.

In Bandar Puteri Puchong, the company is currently upgrading an interchange to serve the 1,000-acre township with an estimated population of 11,500 residents; and a thriving business community.

On its overseas developments in Singapore and Xiamen, IOI Properties noted that China has contributed significantly to the increase in revenue and the company is confident that the projects in the international segment will continue to perform positively over the next financial year.

Despite the current competitive market, IOI Properties is confident that with its sizable landbank in strategic locations and developments within mature townships, it is well-positioned to adapt to market demand and continue marking its presence in the international scene.

One of the IOI Properties’ most significant milestones in financial year 2017 was its purchase of a prime Central Business District land located within Marina Bay in Singapore, and its collaboration with Hongkong Land Ltd to jointly develop and manage two office towers and a retail podium.