KUALA LUMPUR (Aug 22): IOI Properties Group Bhd has reported a 3% drop in net profit for its fourth financial quarter ended June 30, 2016 (4QFY16) to RM389.41 million or 8.83 sen a share, from RM401.59 million or 10.64 sen a share a year ago, on higher tax expenses.

Revenue, however, rose 45.1% to RM891.72 million from RM614.33 million, thanks to higher sales take-up rate for its Trilinq project in Singapore, improvement in sale of properties in Malaysia coupled with steady increase in progress works from all ongoing development projects.

The group declared a dividend of 8 sen per share, payable on Oct 21.

In its filing to Bursa Malaysia today, IOI Properties said net profit for the full financial year (FY16) rose 21.2% to RM1.08 billion or 26.72 sen a share, from RM890.7 million or 25.83 sen a share in FY15. Revenue increased 58.7% to RM3.02 billion from RM1.91 billion.

The group attributed the significant increase in revenue and profitability for the year to its overseas development projects in Xiamen, China, and Singapore, as well its township in Bandar Puteri, Bangi.

On its prospects, IOI Properties said the residential property market is expected to remain soft due to weak consumer sentiment and tight lending conditions.

"However, the demand for both landed properties and high rise properties in high growth areas in medium price range remains resilient.

"On the international front, both the development projects in Xiamen and Singapore are progressing well and they continue to contribute positively to the group's result," it said.

IOI Properties shares fell 1 sen (0.41%) to close at RM2.44 today, for a market capitalisation of RM10.76 billion. — theedgemarkets.com

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