Foreign Projects Boosting IOI Properties’ Revenue

September 5, 2017

 

IOI Properties Group Berhad (“IOIPG”), recorded a revenue of RM1,195.3 million for Q4 2017 which is RM303.6 million or 34% higher than the preceding year corresponding quarter, thanks to foreign investments in China and Singapore. 

After excluding fair value gain on investment properties of RM48.8 million, the Group’s operating profit for the current quarter is RM486.4 million which is RM158.6 million or 48% higher than the preceding year corresponding quarter (similarly excluding fair value gain on investment properties of RM60.1 million).

The Group posted a cumulative revenue of RM4,185.4 million for the current year to date. The increase in both revenue and operating profit was a result of solid performance from its three business segments namely property development, property investment; and leisure and hospitality.

The Group’s overseas developments in Singapore and Xiamen, China have contributed significantly to the increase in revenue and it is confident that the projects in the international scene will continue to perform positively in the next financial year.

Property development segment registered a revenue of RM1,075.2 million which saw an increase of 37% compared to the preceding year corresponding quarter. The increase was mainly due to the strong take-up rates in its Singapore project, The Trilinq, which was completed during the quarter.

Revenue increased by 8% from RM71.7 million to RM77.4 million for its property investment segment which was mainly due to the increase in average occupancy and rental rates in both retail and office segments.

Meanwhile, a revenue increase of RM40.9 million which is RM7.4 million or 22% higher than the preceding year corresponding quarter was posted by its leisure and hospitality segment, mainly contributed by Le Meridien Putrajaya which commenced operations in August 2016.

The Group will continue to focus on sustainable transit-oriented developments. In its township developments of Bandar Puteri Puchong, it is currently upgrading an interchange which is serving the 1,000 acre township with an estimated population of 11,500 residents; and a thriving business community.

One of the Group’s most significant milestones in FY2017 was its purchase of a prime Central Business District land located within Marina Bay in Singapore, and its collaboration with Hongkong Land Limited to jointly develop and manage two office towers and a retail podium.

The Group has earlier declared a 6 sen dividend per share.

 

Image sourced from Pinterest.

This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my

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