IOI Properties 3Q profit soars on stronger Singapore contributions, land sale gains

KUALA LUMPUR (May 29): IOI Properties Group Bhd (KL:IOIPG) posted a more than threefold jump in its third-quarter net profit, driven by the consolidation of its Singapore assets and a RM130 million land sale in Melaka, as well as broad operational improvements across all its business segments.

Net profit for the quarter ended March 31, 2026 (3QFY2026) surged to RM258.11 million, from RM76.13 million in 3QFY2025, while revenue rose 38.7% to RM1.05 billion from RM755.16 million, its Bursa Malaysia filing on Thursday showed.

The stronger quarterly performance was mainly attributed to the consolidation of Scottsdale Properties Pte Ltd — after the property developer bought out its long-time joint-venture partner, City Developments Ltd, which held 50.1% equity interest in the property — as well as leasing income contributions from South Beach Tower in Singapore, higher occupancy at IOI Central Boulevard Towers, and the recognition of the RM130 million sale of the Melaka land.

The group's gross profit margin expanded to 61.5% in 3QFY2026 from 47.5% a year earlier, while its operating profit margin improved to 41.98% from 29.81%. No dividend was declared with the results announcement.

For the first nine months ended March 31, 2026 (9MFY2026), net profit soared over sixfold to RM1.63 billion from RM240.08 million a year earlier, while revenue jumped 40.7% to RM3.06 billion from RM2.17 billion.

The group recorded a RM567.05 million fair value gain on investment properties in 9MFY2026, together with a RM502.79 million gain from the remeasurement of South Beach Tower.

Excluding these exceptional gains, underlying nine-month profit before tax rose 87.9% to RM878.6 million from RM467.6 million previously, supported by stronger contributions across all business segments.

During the period, the property development segment recorded a 66% operating profit rise to RM503.88 million — driven mainly by industrial land sales and contributions from its townships in the Klang Valley and Johor. Revenue grew 28.2% from RM1.13 billion.

The property investment segment's operating profit increased 45% to RM577.9 million, with revenue rising 41.2% to RM993.13 million, supported by contributions from South Beach Tower and higher occupancy at IOI Central Boulevard Towers.

The hospitality and leisure segment returned to an operating profit of RM32.39 million from a loss of RM3.7 million a year earlier, following the inclusion of JW Marriott Singapore South Beach. Revenue nearly doubled to RM608.56 million from RM332.03 million.

Group chief executive officer Datuk Lee Yeow Seng said the results reflected the group’s strategy of balancing its revenue portfolio while capitalising on industrial demand and improving productivity across all three business segments despite global economic uncertainty and geopolitical tensions.

Lee said the property investment segment is expected to continue benefitting from improving occupancy levels at IOI Central Boulevard Towers and South Beach Tower, while the proposed acquisition of Asia Square Tower 2 in Singapore is expected to strengthen recurring income and earnings resilience.

"Complementing the growing property investment segment, the group’s diversified product offerings across three countries, the positive outlook of the hospitality and leisure segment, and the favourable interest rate are anticipated to provide a strong foundation for sustained earnings for the fourth quarter of the financial year," he said.

The group's unbilled sales rose to a record RM2.1 billion, providing earnings visibility in the near to medium term.

Shares of IOI Properties fell three sen or 0.71% to close at RM4.21 on Thursday, valuing the property developer at RM23.18 billion. The stock is up 58.9% year-to-date.

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