IOI Properties net profit more than doubles in 3QFY2021

PETALING JAYA (May 28): IOI Properties Group Bhd’s (IOIPG) net profit more than doubled to RM178.9 million in the third quarter of its financial year ended March 31, 2021 from RM83.6 million in the the preceding year's corresponding quarter.

In a media statement on May 27, IOIPG said its revenue and operating profit also showed significant improvement, mainly attributed to higher contribution from the property development segment. 

IOIPG’s operating profit soared 72% year-on-year (y-o-y) to RM208.1 million with revenue expanding 44% y-o-y to RM579 million in 3QFY2021.

IOIPG CEO Datuk Voon Tin Yow (pictured) said the group achieved exceptional performance in 3QFY2021 amidst the Covid-19 pandemic, thanks to the effective and unique sales and marketing campaign which received favourable response. It was designed to assist buyers overcome the challenges of homeownership and realise life-long dreams.

He added that IOIPG would carry on with its dynamic marketing initiative while leveraging the Home Ownership Campaign to boost sales of sought-after, mid-priced range products. 

These high-quality products are built within integrated developments offering various amenities in flourishing areas such as the Klang Valley (16 Sierra, Bandar Puteri Bangi, IOI Resort City, Warisan Puteri Sepang, Bandar Puteri Puchong and Bandar Puchong Jaya) and Johor (Taman Kempas Utama and Bandar Putra Kulai), that are easily accessible and well-connected.

The property development segment contributed RM485.2 million in revenue and RM182.3 million in operating profit in 3QFY2021, an increase of 71% and 113% respectively from the preceding year's corresponding quarter. 

The sterling performance was mostly due to higher sale contribution from operations in Malaysia and China, as well as advance progress work from on-going residential developments in China.

The residential developments in IOI Palm City, Xiamen, China will continue to contribute to the Group’s financial performance in the coming quarters. Meanwhile, IOI Palm City Mall, Xiamen has secured a high occupancy level with business expected to commence by the third quarter of 2021.

The pace of construction progress of Central Boulevard Towers in Singapore has gained speed. However, IOIPG anticipated there will be increasing uncertainties as the Singapore government will be taking stricter measures to flatten the Covid-19 infection curve. 

For the property investment segment, it contributed RM72.4 million in revenue and RM32.9 million in operating profit in 3QFY2021, which were RM8.5 million and RM7.2 million lower than the same quarter in the previous year. 

Meanwhile, the hospitality and leisure segment recorded a decrease in revenue from RM35.4 million to RM19.1 million and operating loss increased from RM5.0 million to RM7.5 million in 3QFY2021.

IOIPG expected the recovery of property investment, and hospitality and leisure segments in Malaysia would be slower due to the reinstatement of the Movement Control Order. 

Nonetheless, the property investment segment will continue to implement strategies in tenant retention. As at March 31, 2021, the group supported its tenants with rental relief worth over RM55 million.

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