IOIPG cautiously optimistic on prospects

PETALING JAYA: IOI Properties Group Bhd (IOIPG) remains cautiously optimistic about its prospects ahead, supported by a strategic launch pipeline across Malaysia and Singapore.

On the local front, group chief executive officer Lee Yeow Seng noted that the overnight policy rate (OPR) cut to 2.75% in July 2025 has provided a more accommodative financing environment, particularly among first-time buyers and upgraders.

“We will continue to strengthen our presence across established and emerging growth corridors in Malaysia.

“In the Klang Valley, upcoming launches include a new residential phase at Bandar Puteri Puchong and the roll-out of industrial factory layouts and land plots at IOI Industrial Park @ Banting under the IOI Industrial Park Series,” he said in the company’s annual report.

Additionally, Lee said Johor remains a key contributor, bolstered by the Johor–Singapore Special Economic Zone and regional infrastructure upgrades.

“New residential and commercial launches are planned across Bandar Putra Kulai, Taman Kempas Utama, Bandar IOI Segamat and Taman Lagenda Putra, Kulai.

“Additionally, there are industrial launches planned for IOI Industrial Park @ Iskandar Malaysia.”

As for Singapore, Lee said IOIPG will intensify marketing efforts for W Residences Marina View, leveraging its premium core central region location and the integration of luxury and convenience, as well as affiliation with Marriott International.

“Construction continues to progress steadily up to the 16th floor. Being the first branded residence integrated with a five-star hotel in the republic, this waterfront ultra-luxury project will appeal to targeted local and international buyers.”

Lee said IOIPG’s property investment segment will remain focused on sustaining occupancy and enhancing operational efficiency.

“With a portfolio spanning 9.77 million sq ft across retail and office assets, the segment remains a key pillar of the group’s recurring income.

“Following the acquisition of IOI Mall Damansara in December 2024 and the South Beach mixed-use development in Singapore in September 2025, the near-term priority is to consolidate and optimise these assets.”

Lee said the group’s hospitality and leisure segment is expected to maintain positive momentum, supported by the ongoing recovery in international tourism and a strong pipeline of events in the lead-up to Visit Malaysia 2026.

“Tourist arrivals to Malaysia reached 16.9 million as of May 2025 compared to 14.1 million in the same period in 2024 and is on track to exceed the full-year target of 31.4 million.

“Visa exemptions for Chinese and Indian travellers from China and India until end-2026 are expected to further boost demand for city hotels and Mice (meetings, incentives, conferences and exhibitions) destinations.”

Lee said IOIPG’s marketing efforts will continue to centre on a unified tourism campaign, specifically Visit IOI Resort City, positioning the integrated destination as a key tourism hub with a compelling mix of hospitality, retail and leisure offerings.

“Future enhancements include the rollout of new bundled packages and experiential campaigns targeting international tourists and event organisers,” he said.

For the first quarter ended Sept 30, 2025 (1Q26), IOIPG’s revenue rose 40.8% to RM968.7mil from RM687.85mil a year earlier.

This was driven by strong growth across all three core segments – property development, property investment, and hospitality and leisure – which increased 47%, 31% and 44%, respectively.

Net profit for the quarter surged to RM664.33mil from RM69.17mil in 1Q25, due to a one-off re-measurement gain of RM502.8mil following IOIPG’s acquisition of the remaining 50.1% stake in Scottsdale Properties Pte Ltd, giving it full control over the company.

The acquisition has been completed, resulting in the full consolidation of Scottsdale’s financial performance into the group’s results on Sept 1, 2025.

In 1Q26, IOIPG achieved RM473.6mil in property sales, with local projects contributing RM384.2mil or 81% of total sales, while projects in China contributed RM89.4mil, or 19%.

In Malaysia, sales were primarily driven by the Klang Valley region at RM243.4mil, while the Johor region registered RM141.7mil in sales.