IOI Properties' 3Q profit more than halves on higher interest expense

• The group recorded net interest expense of RM100.83 million during the quarter ended March 31, 2025 (3QFY2025), compared with net interest income of RM10.58 million in the corresponding quarter.

KUALA LUMPUR (May 28): IOI Properties Group Bhd’s (KL:IOIPG) net profit fell 65.42% in the third quarter from a year earlier, due to higher interest expense.

The group recorded net interest expense of RM100.83 million during the quarter ended March 31, 2025 (3QFY2025), compared with net interest income of RM10.58 million in the corresponding quarter.

The higher interest expense follows the completion of IOI Central Boulevard Towers in April 2024, IOI Properties said in a filing to Bursa Malaysia on Wednesday.

Net profit for 3QFY2025 was RM76.13 million compared to RM220.21 million over the same period a year earlier.

Quarterly revenue decreased 16.30% year-on-year to RM755.16 million from RM902.19 million, helped by improved performance in the property investment segment and hospitality and leisure segment.

Earnings per share dropped to 1.38 sen from four sen last year. No dividend was declared for the quarter under review.

For the nine months ended March 31, 2025 (9MFY2025), its net profit decreased 53.49% to RM240.08 million from RM516.15 million a year ago. Its revenue increased 0.6% to RM2.17 billion from RM2.16 billion a year earlier.

On prospects, IOI Properties said its IOI City Tower One—a premium Grade A office building in IOI Resort City—has made significant progress by achieving close to 100% leasing commitment.

In the hospitality segment, the “Visit IOI Resort City” campaign aims to boost tourism and footfall in line with Visit Malaysia 2026.

In China, the group re-aligned the pricing strategy for its completed inventories at IOI Palm International Parkhouse, resulting in a gradual improvement in sales.

In March 2025, the 370-room Sheraton Grand Xiamen Jimei hotel officially opened, marking the presence of all three core business segments in Xiamen along with IOI Mall Xiamen and IOI Business Park in the city.

In Singapore, IOI Central Boulevard Towers has secured 80% lease commitments. The group expects more interest in the coming months. Meanwhile, construction of W Residences Marina View has reached 10 of 51 floors.

Despite global challenges, the group expects its FY2025 performance to remain satisfactory, supported by a diversified portfolio, strong recurring income, and positive hospitality outlook.

IOI Properties’ share price ended three sen or 1.6% higher at RM1.90 on Wednesday, valuing the group at RM10.5 billion. The counter has declined 14.41%.

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