IOI Properties’ 1Q Net Profit Surges on Massive Remeasurement Gain and Strong Segment Growth

KUALA LUMPUR (Nov 25) — IOI Properties Group Bhd (KL:IOIPG) delivered an exceptional first-quarter performance for FY2026, with net profit soaring to RM664.33 million, a more than ninefold jump from RM69.17 million a year earlier. The sharp increase was largely driven by a one-off remeasurement gain of RM502.8 million arising from the group’s full acquisition of Scottsdale Properties Pte Ltd, alongside improved contributions from its development, investment and hospitality divisions.

IOI Properties had completed the acquisition of the remaining 50.1% stake in Scottsdale Properties for RM2.75 billion in September. Scottsdale owns several prime Singapore assets including JW Marriott Singapore South Beach, South Beach Avenue and South Beach Tower, strengthening the group’s recurring income portfolio.

Stronger Profitability Across All Segments

Profit before tax surged more than fivefold to RM753.6 million, significantly higher than the RM133.7 million posted in the same quarter last year. Even without the remeasurement gain, core performance remained healthy across the group’s diversified footprint in Malaysia, Singapore and China.

Quarterly revenue grew 40.8% y-o-y to RM968.70 million, supported by broad-based growth:

• Property Development: +47%

• Property Investment: +31%

• Hospitality & Leisure: +44%

Gross profit margin widened to 50.4%, while operating margin jumped to 84.4%, reflecting the exceptional one-off gain. Excluding this, operating margin would have been 25.9%, still a solid showing given ongoing market challenges.

Finance costs eased 12.1% to RM95.63 million, while marketing, selling and administrative expenses rose due to increased activity and consolidation of newly acquired assets.

No dividend was declared for the quarter.

Malaysia Continues to Anchor Development Sales

The property development segment delivered RM519.4 million in revenue and RM155 million in operating profit. Total sales for the quarter reached RM473.6 million, with 81% from Malaysia.

Within Malaysia:

• Klang Valley — RM243.4 million

• Johor — RM141.7 million

The Klang Valley performance reflects ongoing demand for well-located developments, similar to rising interest in commercial property in KL, emerging transit-linked townships and growing corridors anchored by infrastructure upgrades. Broader buyer confidence is also evident in adjacent thriving zones such as office space in Bukit Jalil, landed homes near future MRT3 stations and maturing industrial parks across industrial property in Subang area, factory in Puchong, and demand-driven industrial land in Selangor.

Investment Properties Lift Recurring Income

Revenue from property investment rose to RM287.2 million, with operating profit of RM149.7 million. Key contributors included:

• IOI Central Boulevard Towers, Singapore

• IOI Mall Damansara

• South Beach properties

The consolidation of Singapore assets is expected to significantly strengthen IOI Properties’ long-term recurring revenue base.

Hospitality Impacted by New Hotel Ramp-Up

The hospitality and leisure segment recorded RM159 million in revenue, although operating profit softened to RM4.3 million, mainly due to ramp-up and pre-opening costs at the new Sheraton Grand Xiamen Jimei in China.

Nonetheless, the group anticipates stronger performance ahead, backed by the Visit Malaysia 2026 campaign and the recovery of leisure and business travel.

Outlook: Stable and Supported by Diversified Strength

IOI Properties said it remains optimistic for the coming quarters, supported by:

• A geographically diversified portfolio across Malaysia, Singapore and China

• Strong recurring income from investment properties

• Positive hospitality outlook ahead of major national tourism initiatives

• Stable demand across core markets

The group’s strategic expansion and strengthening of recurring income streams position it well for sustained performance, despite moderating global economic conditions.