IOI Properties’ property investment segment records 53% growth

• IOI Properties’ hospitality & leisure segment more than doubled its revenue, primarily driven by contributions from three new additions to the portfolio, namely Moxy Hotel, W Kuala Lumpur and Courtyard by Marriott Penang.

KUALA LUMPUR (Feb 26): IOI Properties Group Bhd registered a revenue of RM1.42 billion for the first half of financial year 2025 (6M FY2025), which ended on Dec 31, 2024.

While revenue from the property development segment declined by 14%, this was offset by the robust performance of the property investment segment, which continued its growth trajectory with an impressive 53% growth, the company stated in a media release.

Meanwhile, IOI Properties’ hospitality & leisure segment more than doubled its revenue, primarily driven by contributions from three new additions to the portfolio, namely Moxy Hotel, W Kuala Lumpur and Courtyard by Marriott Penang.

Profit before tax (PBT) in 6M FY2025 declined by 30% to RM284.5 million, compared to the RM405 million reported in 6M FY2024.

The softer performance was primarily attributed to the interest expense from IOI Central Boulevard Towers.

“Nonetheless, the impact of the higher interest expense was moderated by the stronger performance of its property investment and hospitality & leisure segments,” stated the group.

“While economic uncertainty lingers, the declining interest rates outlook bodes well for the group. Our diversified product offerings across three countries, sizeable recurring income stream from our established property investment portfolio, and the positive outlook of the hospitality and leisure segment will provide the group with a strong foundation to ensure sustained earnings ahead,” said group chief executive officer, Lee Yeow Seng. (pictured)

In 6M FY2025, the property development segment achieved sales of RM692.9 million, with local projects contributing RM625.1 million or 90% of total sales.

In Malaysia, sales were primarily driven by the Klang Valley region at RM418.8 million, led mature integrated developments such as IOI Resort City in Putrajaya and Bandar Puteri Puchong in Selangor.

The Johor region registered RM196.8 million in sales, contributed by our vibrant townships, Bandar Putra Kulai and Taman Kempas Utama.

The property investment segment continues to deliver resilient performance, underpinned by high committed occupancy and strong footfall of IOI shopping malls. In December 2024, the group successfully completed the acquisition of Tropicana Gardens Mall and rebranded it as IOI Mall Damansara.

The hospitality & leisure segment continues to benefit from increased tourism activities, driven by Tourism Malaysia’s initiatives. In 2024, Malaysia recorded 25.0 million in tourist arrivals, achieving 92% of its full year target of 27.3 million, and marking a 24% increase from the 20.1 million in 2023.

In the People’s Republic of China (PRC), economic challenges continue to persist despite efforts by the central bank to revitalise the property sector, stated IOI Properties.

The group remains focused on clearing completed inventories at IOI Palm City and IOI Palm International Parkhouse in Xiamen, allowing monetisation into cash flow to support capital requirements.

Meanwhile, the 370-room Sheraton Grand Xiamen hotel, which completed its construction November 2024, is set to open its doors in March 2025. This addition is expected to complement IOI Mall Xiamen and IOI Business Park Xiamen, strengthening the group’s recurring income stream.

In Singapore, the group’s proactive efforts and the improving market sentiment of the office segment have driven IOI Central Boulevard Towers’ commitment rate to 75%, a significant increase from approximately 39% a year ago.

The leasing momentum was further supported by the final Temporary Occupation Permit obtained in December 2024. Moving forward, we remain focused on achieving a stronger growth for this sub-segment while preparing for the development of W Residences Singapore-Marina View.

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