KUALA LUMPUR (May 29): IOI Properties Group Bhd posted a more than threefold increase in net profit for the third quarter ended March 31, 2026 (3QFY2026), supported by stronger contributions from its Singapore investment properties, a RM130 million land disposal in Melaka, and improved performances across all core business segments.
The property developer recorded a net profit of RM258.11 million in 3QFY2026, compared with RM76.13 million a year earlier. Revenue climbed 38.7% year-on-year to RM1.05 billion from RM755.16 million, according to its filing with Bursa Malaysia.
The stronger quarterly earnings were mainly driven by the consolidation of Scottsdale Properties Pte Ltd following the acquisition of the remaining stake previously held by City Developments Ltd. Contributions from South Beach Tower and higher occupancy at IOI Central Boulevard Towers in Singapore also boosted recurring income, alongside recognition of the Melaka land sale.
Profitability improved significantly during the quarter, with gross profit margin rising to 61.5% from 47.5% previously, while operating profit margin strengthened to 41.98% from 29.81%. The group did not declare a dividend for the quarter.
For the first nine months ended March 31, 2026 (9MFY2026), net profit surged more than sixfold to RM1.63 billion from RM240.08 million in the previous corresponding period, while revenue increased 40.7% to RM3.06 billion from RM2.17 billion.
The nine-month performance included a RM567.05 million fair value gain on investment properties and a RM502.79 million gain arising from the remeasurement of South Beach Tower.
Excluding these exceptional items, underlying profit before tax rose 87.9% to RM878.6 million from RM467.6 million, reflecting stronger operational contributions across all business divisions.
The property development division recorded a 66% increase in operating profit to RM503.88 million, supported mainly by industrial land sales and stronger contributions from township developments in the Klang Valley and Johor. Segment revenue rose 28.2% year-on-year to RM1.13 billion.
Meanwhile, the property investment segment achieved a 45% rise in operating profit to RM577.9 million as revenue expanded 41.2% to RM993.13 million. The improvement was driven by recurring income contributions from South Beach Tower and improving occupancy at IOI Central Boulevard Towers.
The hospitality and leisure segment also returned to profitability, posting an operating profit of RM32.39 million compared with a loss of RM3.7 million a year earlier. Revenue for the division nearly doubled to RM608.56 million from RM332.03 million, supported by the inclusion of JW Marriott Singapore South Beach.
Group chief executive officer Lee Yeow Seng said the results reflected the group’s strategy of balancing recurring income and development earnings while capitalising on industrial property demand and operational improvements across its businesses despite ongoing global economic uncertainty.
He added that the property investment division is expected to continue benefiting from improving occupancy at IOI Central Boulevard Towers and South Beach Tower. The proposed acquisition of Asia Square Tower 2 in Singapore is also expected to strengthen the group’s recurring income base and earnings resilience moving forward.
According to Lee, the group’s diversified portfolio across Malaysia, Singapore and China, together with improving hospitality prospects and a more favourable interest rate environment, are expected to support earnings momentum into the fourth quarter.
IOI Properties’ unbilled sales rose to a record RM2.1 billion, providing stronger earnings visibility over the near to medium term.
Shares in IOI Properties Group Bhd closed three sen lower at RM4.21 on Thursday, giving the company a market capitalisation of RM23.18 billion. Despite the slight decline, the stock has gained 58.9% year-to-date.
What Investors Can Learn
Investors can learn that IOI Properties is increasingly strengthening its recurring income base through high-quality commercial assets in Singapore, reducing reliance on cyclical property development earnings. The strong improvement in occupancy rates and consolidation of key investment properties indicate growing stability in cash flow generation.
The results also highlight how industrial land demand continues to be a major earnings driver for Malaysian developers, particularly in strategic growth corridors such as the Klang Valley and Johor.
Another key takeaway is that exceptional gains significantly boosted reported earnings, so investors should also focus on underlying operational profit growth, which still showed strong momentum at nearly 88%.
The record RM2.1 billion unbilled sales provide healthy earnings visibility, while the proposed acquisition of Asia Square Tower 2 signals management’s long-term strategy of expanding recurring income assets to improve resilience against economic volatility.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 30 May 26
Malaysia