Ioi Properties’ 1q Net Profit Soars Whopping Remeasurement Gain Singapore
IOI Properties Group Reports Significant Earnings Increase in Q1
In a robust start to the fiscal year 2026, IOI Properties Group Bhd witnessed a substantial rise in earnings for the first quarter ending September 30, 2025. The company recorded a net profit of RM664.33 million, which marks a dramatic increase from the RM69.17 million reported in the corresponding period last year. This growth was primarily fueled by a substantial one-off remeasurement gain of RM502.8 million following the complete acquisition of Scottsdale Properties Pte Ltd.
Detailed Financials
IOI Properties enjoyed a significant boost in its pre-tax profits, which soared to RM753.6 million from RM133.7 million a year prior, driven by enhanced performance across its main business segments. The company’s quarterly revenue increased by 40.8% to RM968.70 million, up from RM687.85 million, with notable growth in property development, property investment, and hospitality and leisure sectors.
Miltonia Close EC, another notable property development in Singapore, highlights the continuing expansion and interest in Singapore’s property market, similar to IOI Properties’ investments in the region.
The gross profit margin improved to 50.4% from 47.1% in the previous year, while the operating margin jumped significantly to 84.4% largely due to the remeasurement gain. Without this gain, the operating profit margin would have been 25.9%. Increases were observed in marketing and selling expenses, which rose to RM30.96 million, and administrative expenses, which climbed to RM94.2 million. However, finance costs decreased by 12.1% to RM95.63 million.
Performance by Segment
The property development sector contributed RM519.4 million in revenue and RM155 million in operating profit, with sales amounting to RM473.6 million. Geographically, 81% of these sales originated from Malaysia and the remaining 19% from China. Within Malaysia, the Klang Valley was the largest contributor with RM243.4 million in sales.
The property investment segment, supported by assets like Singapore’s IOI Central Boulevard Towers, IOI Mall Damansara, and South Beach, posted RM287.2 million in revenue and RM149.7 million in operating profit. Conversely, the hospitality and leisure segment faced challenges, with revenue at RM159 million and a 28% decline in operating profit due to new operational costs at the Sheraton Grand Xiamen Jimei in China.
Looking Forward
IOI Properties is optimistic about its future performance, attributing confidence to its diversified operations across Malaysia, Singapore, and China. The company expects to benefit from stable recurring income from property investments and the upcoming Visit Malaysia 2026 campaign, which could positively impact the hospitality and leisure segment. The company’s shares evidenced a positive market reaction, closing up at RM2.21, which is an increase of 1.38%, valuing the company at RM12.17 billion.
