IOI Properties CEO’s RM100m share purchases highlight potential REIT-led re-rating

PETALING JAYA: (Feb 23) Sustained share purchases by Datuk Lee Yeow Seng, group chief executive officer of IOI Properties Group Bhd (IOIPG), since late January 2026 have drawn market attention, as the group advances plans for dual real estate investment trust (REIT) listings in Malaysia and Singapore.

Bursa Malaysia filings show that Lee acquired more than 28 million IOIPG shares between Jan 30 and Feb 19, 2026, at prices ranging from RM3.219 to RM3.645 per share, representing a total cash outlay exceeding RM100 million.

As at Feb 19, Lee’s direct shareholding stood at 86.62 million shares (1.57%), while his deemed interest amounted to 3.62 billion shares (65.67%).

Closed-period transactions disclosed

The purchases were conducted during a closed period, under a formal dealing notification filed with Bursa Malaysia on Monnday.

Such transactions are permitted under Bursa regulations provided full disclosure requirements are met.

The transactions were disclosed via multiple filings and were carried out progressively over several trading sessions.

Dual-REIT strategy

Analysts attribute the sustained share accumulation to IOIPG’s planned REIT listings, which could reshape the group’s capital structure and earnings profile.

The proposed Malaysian REIT, targeted for mid-2026, is expected to be anchored by IOI City Mall in Putrajaya and other domestic assets, with an estimated portfolio value of between RM7 billion and RM8 billion.

A separate Singapore REIT, targeted for 2027, is expected to comprise IOI Central Boulevard Towers and the South Beach mixed-use development. The Singapore portfolio is estimated to be valued at between S$7 billion (RM21.54 billon) and S$8 billion.

According to Hong Leong Investment Bank (HLIB) analyst Tan Kai Shuen, who met with Lee recently, proceeds from the Singapore REIT are expected to be used partly to reduce group gearing following its recent asset acquisitions.

South Beach acquisition

IOIPG recently completed the acquisition of full ownership of the South Beach integrated development in Singapore for approximately RM2.75 billion (S$893.83 million).

The development comprises a Grade A office tower, retail podium, and a 634-room JW Marriott Hotel Singapore South Beach.

Full ownership provides the group with operational control to optimise asset performance and facilitate its inclusion in a future REIT vehicle.

For 1Q2025, the hotel recorded an occupancy rate of 76% and an average daily rate (ADR) of S$470. Management is targeting occupancy of 90% and ADR of S$600 through repositioning towards free independent travellers and higher walk-in traffic.

Balance sheet implications

If both REIT listings proceed as planned, combined gross proceeds could reach up to RM15 billion.

This could reduce IOIPG’s net gearing from approximately 0.9 times, following the South Beach acquisition, to about 0.3 times.

The group is currently trading at about 0.44 times its book value.

HLIB maintains a target price of RM4.05, based on a 35% discount to its revised net asset value (RNAV) estimate of RM6.24 per share, citing narrowing valuation gaps as REIT catalysts materialise.

Institutional flows

Bursa filings indicate that while Lee has been increasing his shareholding, the Employees Provident Fund (EPF) has been trimming its position periodically.

Analysts note that such institutional selling is consistent with portfolio rebalancing rather than a fundamental reassessment of the company.

Key catalysts

Market participants are expected to monitor developments over the next four to six months, particularly the proposed Malaysian REIT listing.

A successful listing could validate asset valuations, lower gearing and increase recurring income contributions, potentially repositioning IOIPG from a property developer to an asset-light real estate investment manager.

The Singapore REIT, targeted for 2027, would subsequently provide a platform to monetise its Singapore commercial assets.

Editor’s note:
All shareholding figures are based on Bursa Malaysia filings as at Feb 19, 2026. Asset valuation ranges and listing timelines are based on analyst estimates and subject to change. A further tranche reportedly transacted on Feb 20 has not been independently verified.

This article is for informational purposes only and does not constitute investment advice.

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