IOI Properties posts higher earnings excluding previous FV gain

KUALA LUMPUR: IOI Properties Group Bhd posted a net profit of RM273.53 million, or 6.2 sen per share, in the second financial quarter ended Dec 31, 2016 (2QFY2017).

In comparison, the property developer recorded a net profit of RM307.17 million, or 8.16 sen per share, in the previous corresponding quarter. The higher earnings were lifted by a net fair value (FV) gain of RM121 million a year ago.

In the filing with Bursa Malaysia yesterday, IOI Properties said excluding the net FV gain of RM121 million in the previous corresponding quarter, the property developer's pre-tax profit for the current quarter was 26% higher than the year-ago period.

Quarterly revenue grew nearly 34% to RM1.19 billion from RM894.41 million in 2QFY2016, driven by contributions from all business segments.

In a separate statement, IOI Properties said its property development segment revenue grew 36% to RM1.07 billion in 2QFY2017 and achieved an operating profit of RM337.5 million, up 23% year-on-year, on higher sales take-up rates for its projects in Singapore as well as from projects in IOI Resort City Putrajaya, 16 Sierra and Bandar Puteri Bangi.

For the first half of FY2017, its net profit increased 9.6% to RM463.1 million from RM422.64 million a year earlier, while revenue jumped 40.6% to RM2.09 billion in 1HFY2017 from RM1.49 billion in 1HFY2016.

“With our sizeable landbank in strategic locations, a good delivery track record and our ability to adapt to market demand, the group is expected to perform well in the remaining financial period,” IOI Properties CEO Lee Yeow Seng said in the statement.

This article first appeared in The Edge Financial Daily, on Feb 22, 2017.

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