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IOI Properties' 1H Pre-Tax Profits Jumps To RM685 Million

Last update: 21/02/2017

KUALA LUMPUR, Feb 21 (Bernama) -- IOI Properties Group Bhd's pre-tax profit for the six months ended Dec 31, 2016 increased 6.69 per cent to RM685.68 million compared with RM642.66 million recorded for the same period in 2015.

The group's revenue jumped 41 per cent to RM2.09 billion from RM1.48 billion, previously, mainly due to its property development segment in Singapore and Klang Valley, IOI Resort City, Warisan Puteri @Sepang and 16 Sierra townships.

The company said pre-tax profit for the quarter, however, shed to RM396.22 million from RM434.40 million registered in the preceding year corresponding quarter.

Revenue, however, was higher at RM1.19 billion versus RM894.40 million before, it said in a filing to Bursa Malaysia today.

IOI Properties said the demand for properties in Malaysia was generally supported by a young demography, conducive interest rate and urbanisation.

"The group's property development segment is expected to contribute positively to its performance, as evident by the demand for its mid-priced properties," it said.

On the international front, development projects in Singapore and Xiamen, China, would continue to contribute positively to the group's results.

'Triling', the development project undertaken in Singapore, was expected to obtain the temporary occupational permit by next quarter.

In the property investment segment, amid an increasingly competitive environment, the strategic locations of the group's retail, hospitality and office developments within matured townships and high growth corridors, enabled property investment portfolios to enjoy healthy occupancies and rental yields, it added.

"With sizable land bank in strategic locations, strong delivery track record and solid financial capabilities, the group is well-positioned to adapt to market demand," it added.

-- BERNAMA