PETALING JAYA: IOI Properties Group Bhd
’s (IOIPG) net profit for the fourth quarter ending June 30, 2025 (4Q25) plunged by 47% year-on-year (y-o-y) due to lower fair value gains from investment properties and higher interest expense following the commencement of operations of IOI Central Boulevard Towers.
In 4Q25, IOIPG’s net profit slid to RM823.93mil from RM1.55bil previously, or earnings per share of 14.96 sen.
This was despite a higher revenue in the quarter, increasing by 14% y-o-y to RM890.21mil underpinned by improved performance across all segments.
For the financial year ended June 30, 2025 (FY25), the group’s net profit fell by 48% y-o-y to RM1.06bil, while revenue recorded a 4% y-o-y gain to RM3.06bil.
In a filing with Bursa Malaysia, IOIPG said its property investment segment’s operating profit declined by RM23.2mil or 25% y-o-y in 4Q25.
This was mainly due to a one-off charge for leasing commission and an increase in property tax assessment by the Inland Revenue Authority of Singapore.
Revenue for this segment, however, grew by 23% y-o-y in 4Q25, bolstered by higher contributions from the newly acquired IOI Mall Damansara in December 2024, as well as the increased occupancy of IOI Central Boulevard Towers in Singapore following the completion of construction in April 2024.
With regards to the property development segment, its operating profit and revenue expanded by 34% and 5% y-o-y, on the back of increased sales contributions from the Malaysia region, particularly from ongoing projects in Klang Valley and Johor.
Moreover, the group’s hospitality and leisure segment reported a narrower operating loss of RM0.9mil in 4Q25, from RM107mil in 4Q24.
Revenue improved by 41% y-o-y to RM117.7mil. The better performance in this division was because of higher contributions from the newly acquired Courtyard by Marriott Penang and the opening of Sheraton Grand Hotel on March 3, 2025. Additionally, the improved performance from the newly refurbished hotels further supported the group’s revenue growth.
Group chief executive officer Lee Yeow Seng said the declining trend in interest rates bodes well for the company and it remains confident that its diversified product offerings across three countries, sizeable recurring income stream from the group’s established property investment portfolio, and the favourable outlook of the hospitality and leisure segment provides IOIPG with a solid foundation for sustained earnings ahead.
“We are pleased with the efforts and commitment shown by team IOI in delivering a commendable result for FY25 especially for our property investment and hospitality and leisure segments, despite challenges in the global business environment and trade uncertainties,” he said in a statement yesterday.
In FY25, the property development segment achieved sales of RM1.81bil. Local projects contributed RM1.62bil, accounting for 89% of total sales, while projects in China and Singapore contributed RM187.6mil, or 11% of the total sales.
In Malaysia, sales were primarily driven by the Klang Valley region at RM946.8mil and this was led by IOIPG’s developments, namely IOI Resort City in Putrajaya and 16 Sierra in Selangor. Meanwhile, the Johor region registered RM663.8mil in sales, contributed by the group’s townships, Bandar Putra Kulai and Taman Kempas Utama.
“In addition to the noteworthy sales performance, the group’s completed inventories continued to trend downwards, reducing from RM1.92bil to RM1.27bil over the last twelve months.
“The reduction was primarily attributed to the group’s concerted efforts in rolling out targeted marketing campaigns and strategic product positioning. The group remains committed to further monetising these inventories to generate immediate cash flow to support the group’s ongoing development projects,” Lee said.
IOIPG declared an interim single-tier dividend of 8 sen per share, with the ex-date on Sept 11, 2025 and payment date on Sept 25, 2025.
In a separate filing with the local bourse, IOIPG has also incorporated a wholly-owned subsidiary, IOIPG REIT Management Sdn Bhd. The latter is intended to serve as the proposed management company for a real estate investment trust (REIT) to be established and listed on the Main Market of Bursa Malaysia.
Maybank Investment Bank Bhd and AmInvestment Bank Bhd have been appointed by the company as the joint principal advisers to assist the company in its evaluation of the proposed REIT establishment and listing.