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- IOI Properties’ profit before tax jumped more than five times to RM753.6 million from RM133.7 million a year ago, driven by stronger performance in its property development, investment and hospitality segments.
KUALA LUMPUR (Nov 25): IOI Properties Group Bhd (KL:IOIPG) posted a net profit of RM664.33 million for the first quarter ended Sept 30, 2025 (1QFY2026), an increase of more than ninefold from RM69.17 million a year earlier, lifted by a one-off remeasurement gain of RM502.8 million from its full acquisition of Scottsdale Properties Pte Ltd and improved contributions across its core segments.
Scottsdale Properties, which was previously a joint venture with City Developments Ltd's wholly-owned subsidiary Ascent View Holdings, owns the JW Marriott Singapore South Beach, South Beach Avenue and South Beach Tower.
In September, IOI Properties completed the acquisition of the remaining 50.1% in Scottsdale Properties for RM2.75 billion.
IOI Properties’ profit before tax jumped more than five times to RM753.6 million from RM133.7 million a year ago, driven by stronger performance in its property development, investment and hospitality segments.
Quarterly revenue rose 40.8% year-on-year to RM968.70 million from RM687.85 million, with all three segments registering revenue growth: property development (+47%), property investment (+31%), and hospitality and leisure (+44%).
Gross profit margin rose to 50.4% from 47.1% a year ago, while operating margin surged to 84.4% from 32.2%, boosted by the remeasurement gain. Excluding the one-off gain, operating profit margin would have been at 25.9%.
Marketing and selling expenses grew 6.3% to RM30.96 million, while administrative expenses rose 44.2% to RM94.2 million. Finance costs, however, dropped 12.1% to RM95.63 million from RM108.81 million.
No dividend was declared for the quarter under review.
By segment, property development contributed RM519.4 million in revenue and RM155 million in operating profit, with 1QFY2026 sales totalling RM473.6 million — of which 81% came from Malaysia and 19% from China. In Malaysia, the Klang Valley contributed RM243.4 million in sales, followed by Johor with RM141.7 million.
The property investment segment posted RM287.2 million in revenue and RM149.7 million in operating profit, lifted by contributions from Singapore’s IOI Central Boulevard Towers, IOI Mall Damansara and South Beach assets.
Hospitality and leisure revenue came in at RM159 million, but operating profit fell 28% to RM4.3 million due to ramp-up costs at the new Sheraton Grand Xiamen Jimei in China.
Looking ahead, the group expects satisfactory performance, supported by its diversified operations in Malaysia, Singapore and China, stable recurring income from property investment, and tailwinds from the upcoming Visit Malaysia 2026 campaign for its hospitality and leisure segment.
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