IOI Properties Group (“IOIPG”) has recorded a revenue of RM691.5 million in Q1 FY2023 which is a 60% increase compared to the preceding year corresponding quarter. The Group’s strong start is attributed to better performances across all its business segments particularly the hospitality and leisure segment which saw a sterling recovery of more than 400% in revenue. Profit before tax was recorded at RM689.7 million following a recognition of fair value gain of RM470.4 million arising from the completion of IOI City Mall Phase 2 and a strong turnaround of hospitality and leisure and property investment segments.
In the property development segment, the Group achieved a revenue of RM529.9 million, which is a 46% increase compared to the preceding year corresponding quarter. This was attributable to higher sales contributions from Malaysia operations despite the property industry being impacted by inflationary pressures and global supply chain disruptions.
The Group’s property investment segment’s revenue rose to RM110.1 million which is an improvement of 86% in performance compared to the preceding year corresponding quarter. This substantial increase in financial performance was mainly due to the low base effect recorded in Q1 FY2022 and partially contributed by the commencement of recurring leasing income from IOI City Mall Phase 2 following its business commencement on 25 August 2022.
For the Group’s hospitality and leisure segment, its contributions increased from RM7.6 million to RM48.7 million in revenue compared to the preceding year corresponding quarter. This better performance was a result of resilient domestic tourism.
“IOIPG has continued to deliver resilient results despite the challenges. I am confident that we are on the right track to achieving our targets in FY2023 as our business segments are well positioned for sustained growth,” said Dato’ Voon Tin Yow, Chief Executive Officer of IOIPG.
“The rise in interest rates and cost of living has increased the demand for affordably priced homes within the housing market. Hence, our product range will remain flexible to meet the rising demand in this space,” added Voon.
In Singapore, IOI Central Boulevard Towers is slated for completion in 2023 and has secured a significant international anchor tenant. Meanwhile, in the People’s Republic of China (PRC), the Group has launched its marketing campaign in line with new financial policies rolled out by the Chinese government to drive sales of its completed developments in Xiamen.
Moving forward, IOIPG remains cognisant of global challenges as it looks ahead to navigate through substantial headwinds across its developments in Malaysia, Singapore and PRC. The Group is confident that recurring earnings from its various property investment portfolios as well as its pipeline of new projects and launches will continue to lay a strong foundation to ensure the sustainability of the Group’s earnings across all business segments for the long-term.