IOI Properties FY2026 net profit doubles to RM2.15b, revenue hits record RM4.44b

PETALING JAYA (Aug 27): IOI Properties Group Bhd’s net profit attributable to shareholders more than doubled to RM2.15 billion for the financial year ended June 30, 2026 (FY2026), as revenue rose 45.1% to a record RM4.44 billion.

Profit attributable to owners of the company increased 102.5% from RM1.06 billion in FY2025, while profit before tax climbed 82% to RM2.65 billion from RM1.45 billion, according to the group’s unaudited results in a Bursa Malaysia filing on Thursday (Aug 27). Earnings per share rose to 39.13 sen from 19.32 sen.

The stronger full-year performance came despite a weaker reported fourth quarter, when profit attributable to owners fell 36.5% year on year to RM523.11 million from RM823.93 million, even as revenue jumped 55.8% to RM1.39 billion from RM890.21 million.

The decline in 4QFY2026 earnings mainly reflected a smaller fair-value gain on investment properties of RM288.1 million, compared with RM915.6 million in the corresponding quarter a year earlier.

On the group’s stated underlying basis, however, 4Q PBT rose 98% to RM424 million from RM214.1 million. The measure excludes fair-value gains on investment properties and inventory write-downs for the current quarter, while the prior-year comparison also excludes the reversal of impairment losses and impairment losses on property, plant and equipment.

IOI Properties attributed the underlying improvement to contributions from the newly consolidated South Beach office tower and JW Marriott Singapore South Beach operations, the recognition of Ampang land sales, and higher occupancy at IOI Central Boulevard Tower.

For FY2026, the group said underlying PBT rose 91% to RM1.30 billion from RM681.7 million, excluding fair-value gains on investment properties, a RM502.8 million gain from the remeasurement of its previously held interest in a joint venture, and inventory write-downs.

The remeasurement gain arose after IOI Properties acquired the remaining 50.1% interest in Scottsdale Properties Pte Ltd, which owns the South Beach office tower and JW Marriott Singapore South Beach operations. The group also recognised RM855.2 million in fair-value gains on investment properties for the full year, compared with RM915.6 million in FY2025.

The board declared an interim dividend of eight sen and a special dividend of eight sen per share, bringing total dividends declared for FY2026 to 16 sen per share, double the eight sen declared for FY2025. The dividends will be paid on Sept 24 to shareholders registered by Sept 15.

Development, investment drive growth

Property development revenue rose 48% to RM779.2 million in 4QFY2026, while segment operating profit increased 55% to RM235.8 million. The group attributed the improvement mainly to RM257.9 million in recognised sales of Ampang land.

For the full year, property development revenue increased to RM2.22 billion from RM1.65 billion, while segment operating profit climbed 62% to RM739.7 million from RM456 million. The group cited recognised land sales in Ampang and Melaka, alongside its broader development activities.

Property investment was the strongest operating contributor in the fourth quarter, with revenue rising 71% to RM413.1 million and operating profit jumping nearly fourfold to RM272.8 million from RM68.4 million.

IOI Properties attributed the improvement to leasing-income contributions from South Beach office tower following the consolidation of Scottsdale from Sept 1, 2025, higher occupancy at IOI Central Boulevard Tower, and higher leasing commissions incurred in the corresponding quarter a year earlier.

For FY2026, property investment operating profit rose 82% to RM850.7 million from RM466.8 million, while revenue grew 49% to RM1.41 billion.

Meanwhile, hospitality and leisure revenue grew 65% to RM194.6 million in the fourth quarter, while the segment returned to an operating profit of RM0.2 million from a RM0.9 million loss previously, reflecting the inclusion of JW Marriott Singapore South Beach operations.

Sales reach RM3.91b, unbilled sales at record RM2.51b

Property development sales totalled RM3.91 billion in FY2026, with Malaysian projects contributing RM3.53 billion, or 91%. China accounted for RM247.7 million and Singapore RM132.3 million.

Klang Valley contributed RM2.65 billion in sales, aided by industrial land sales at IOI Industrial Park Banting and commercial land sales in Jalan Ampang. Johor generated RM875.5 million, supported by Bandar Putra Kulai, Taman Kempas Utama and industrial land sales.

Unbilled sales reached a record RM2.51 billion, which the group said provided near- to medium-term earnings visibility. Completed inventories fell by RM100.6 million to RM1.17 billion, mainly due to improved sales in China following a price-alignment exercise.

The Securities Commission Malaysia has approved the proposed establishment and listing of IOIPG Malaysia REIT. The wider REIT proposals, including the proposed disposal of selected retail, hotel and office properties for about RM7.58 billion, are expected to be completed by 4QCY2026, subject to requisite approvals and unforeseen circumstances.

Separately, shareholders approved the proposed acquisition of Asia Square Tower 2 in Singapore at an extraordinary general meeting on Thursday. Completion remains subject to conditions precedent under the relevant agreements and is anticipated in 3QCY2026.

Looking ahead, IOI Properties said it remained cautiously optimistic about FY2027 despite global economic headwinds and geopolitical risks, citing demand for its property development products and a growing contribution from its property investment portfolio.

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