IOI Properties 4Q profit at RM413.05m, declares 8 sen dividend

KUALA LUMPUR: IOI Properties Group Bhd reported a net profit of RM413.05 million, or 12.75 sen per share, boosted by a fair value gain of RM305.3 million on investment properties for the fourth quarter ended June 30, 2014 (4Q14). Revenue came in at RM417.17 million in the quarter.

For the full year ended June 30, 2014 (FY14), IOI Prop achieved a net profit of RM913.4 million on RM1.45 billion revenue. The group declared an interim single-tier dividend of 8 sen per share in respect of the financial year ended June 30, 2014.

Excluding the fair value gain on investment properties and one off gain from the acquisition of subsidiaries of RM198 million, full year operating profit came in at RM596.86 million.

In a filing with Bursa Malaysia yesterday, the group noted that its property development segment, which contributed 85% to group revenue at RM1.24 billion, reported an operating profit of RM494 million.

“The main contributors include our development projects in the Klang Valley and Johor. In addition, our development project in Xiamen (China), has also contributed positively to the group’s results,” it said.

Its property investment segment recorded revenue of RM104.9 million and operating profit of RM66.6 million, contributing 7% to group revenue and 11% to group operating profit respectively. The main contributors in this segment include IOI Mall and IOI Boulevard in Puchong, Selangor, and One & Two IOI Square and IOI Resort in Putrajaya.

Meanwhile, its leisure and hospitality segment, with main contributors such as Putrajaya Marriott Hotel and Palm Garden Hotel in IOI Resort, reported a revenue of RM58.3 million with an operating profit of RM4.4 million.

Its ‘other operations’ segments, which consists mainly of cultivation of plantation produce and property maintenance services, recorded a revenue of RM47.8 million, with an operating profit of RM31.9 million.

On prospects, IOI Prop said the various regulatory measures to curb speculation introduced in Malaysia, Singapore and China, “are not expected to affect the sustainable growth of the property sector over the long term”.

But it thinks the property market in Malaysia and Singapore will remain challenging in the shorter term as the property market sentiment has softened with a slowdown of investment decision.

It expects the current market sentiment to continue over the first half of the new financial year.

“Nonetheless with an unbilled sales of approximately RM1.5 billion and higher recurring income from newly-completed investment properties, the overall group’s performance is expected to be satisfactory,” it said.

IOI Prop was listed on Jan 15 this year with a reference price of RM2.51 per share. It closed 2 sen down at RM2.38 yesterday.

This article first appeared in The Edge Financial Daily, on August 26, 2014.

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