PETALING JAYA: IOI Properties Group Bhd posted a strong set of results for the current quarter ended Dec 31 2016.
According to statement, the Group’s Q2 revenue jumped 34% to RM1, 194.7mil from RM894.4mil in the same quarter of the preceding year. The Group saw a 23% hike in operating profit of RM393.6mil for the current quarter as compared to the preceding year corresponding quarter.
The Group’s increase in revenue and operating profit is contributed by its property development, property investment and leisure & hospitality business segments.
The Group’s property development segment revenue rose 36% to RM1,068.3mil and achieved an operating profit of RM337.5mil, an increase of 23% as compared to the same quarter a year ago. The increase in both revenue and operating profit reflects the higher sales take-up rates for its projects in Singapore as well as favourable take-up rates from projects in IOI Resort City Putrajaya, 16 Sierra and Bandar Puteri Bangi.
In property investment, the Group saw an increase in revenue of 12% from RM69.0mil to RM77.5mil and a 17% increase in operating profit from RM37.7mil to RM43.9mil. This was achieved with the increase of average occupancy rates and upward rate revision from tenancy renewal of IOI City Mall which has contributed vastly to the Group’s property investment segment. The strategic locations of the Group’s retail and office developments within matured townships and high growth corridors have enabled the Group’s investment portfolio to enjoy healthy occupancy rates and rental yields.
Meanwhile, the Group’s leisure and hospitality segment posted a 24% hike in revenue to RM47.5mil and a 44% hike in operating profit to RM11.1mil; with the increase in revenue mainly derived from its collection of world-class renowned hotels namely Four Points by Sheraton, Puchong and Le Meridien Putrajaya, with the latter commencing its business operations in August 2016.
The Group’s current year to date revenue rose 41% to RM2,094.2mil while operating profit jumped 25% to RM664.0mil compared to its preceding year corresponding period.
“The demand for properties within well-planned and sustainable developments will continue to be supported by a young population demographic, conducive interest rate environment and urbanization.
“The Group’s property development segment is set to contribute positively to its performance evidenced by the demand for mid-priced range properties located at IOI Resort City, Bandar Puteri Bangi and Warisan Puteri @ Sepang with accessibility to good amenities.
“In the international front, the Group’s performance has proven that it is on the right track with development projects in Singapore and Xiamen progressing well; and are expected to continue contributing positively to the Group’s results,” said IOIPG chief executive officer Lee Yeow Seng.
“With our sizable land bank in strategic locations, a good delivery track record and our ability to adapt to market demand, the Group is expected to perform well in the remaining financial period,” he added.
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