IOI Properties Group Berhad (IOIPG) recorded a strong financial performance for its third quarter ended 31 March 2021 with a net profit of RM178.9 million, which more than doubled from RM83.6 million in the preceding year corresponding quarter.
Its revenue and operating profit showed significant improvement, mainly attributed to higher contribution from the property development segment. IOIPG’s operating profit soared 72% to RM208.1 million with revenue expanding 44% to RM579.0 million.
For the property development segment in Malaysia, IOIPG’s effective sales and marketing campaign, designed to assist buyers to overcome the challenges of homeownership has led to strong sales performance in Q3 FY2021, with profits to be registered in coming quarters.
“Despite the on-going pandemic, the Group achieved exceptional performance in Q3 FY2021. The overall business sentiment was subdued with the Movement Control Order (MCO) 2.0 imposed in mid-January 2021. However, every member of Team IOI pushed forward and focused on achieving targets and we defied the odds. All these are possible through the commitment and passion of Team IOI to consistently deliver products and services that exceed expectations,” said IOIPG CEO Dato’ Voon Tin Yow.
Contributions from the property development segment were RM485.2 million in revenue and RM182.3 million in operating profit in Q3 FY2021, which soared by 71% and 113% respectively from the preceding year corresponding quarter, mostly due to higher sales contribution from operations in Malaysia and China, and advance progress work from on-going residential development in China.
The residential developments in IOI Palm City, Xiamen, will continue to contribute to the Group’s performance in the coming quarters. Meanwhile, IOI Palm City Mall, Xiamen has secured high occupancy with business expected to commence by the third quarter of 2021.
The pace of construction progress of Central Boulevard Towers in Singapore has gained speed. However, IOIPG expects further uncertainties due to measures taken by the government to contain the pandemic. Leasing activities have commenced and IOIPG has seen a strong response from the market.
Meanwhile, the property investment segment contributed RM72.4 million in revenue and RM32.9 million in operating profit in Q3 FY2021. The hospitality and leisure segment recorded revenue of RM19.1 million.
The recovery of the property investment, and hospitality and leisure segments in Malaysia is expected to be impacted by MCO 3.0. Nonetheless, the Group will continue to implement tenant retention strategies. As at 31 March 2021, IOIPG has supported its tenants with rental relief worth over RM55 million. To maintain its market share in retail, IOIPG will also leverage on its customer loyalty programme and adopt digital innovation to enhance customer experience.