KUALA LUMPUR: IOI Properties Group Bhd's net profit surged to RM1.55 billion in the fourth quarter ended June 30, 2024 (4Q24) compared to RM235.37 million a year ago.
The was primarily driven by fair value gain of RM1.9 billion, largely attributed to the IOI Central Boulevard sale which contributed RM1.3 billion, the group said in a filing to Bursa Malaysia today.
Its revenue for the quarter rose 17.4 per cent to RM782.61 million from RM666.46 million previously.
IOI Properties registered higher earnings per share of 28.08 sen compared to 4.27 sen in 4Q23.
For the full financial year (FY24), IOI Properties posted a net profit of RM2.06 billion from RM1.39 billion a year ago, while revenue rose to RM2.94 billion compared to RM2.59 billion.
The group declared an interim single tier dividend of five sen for FY24.
In FY24, the group's property development segment achieved sales of RM2.14 billion.
Local projects contributed the majority of the sales, amounting to RM1.94 billion or 90 per cent of the total sales, while overseas projects in China contributed RM186.4 million and Singapore contributed the remaining RM13.8 million.
IOI Properties group chief executive officer Lee Yeow Seng said it recognised that the global operating environment might continue to present challenges.
However, it remained committed to enhancing its diverse property offerings across three countries, expanding property investment portfolio to ensure stable recurring income, and leveraging on the positive outlook of its hospitality and leisure segment.
"These strategic initiatives will provide the group with a solid foundation for sustained earnings ahead," he said in a statement.
Lee said in addition to the commendable performance, the group's concerted efforts to clear completed inventories over the last twelve months had yielded a reduction from RM2.41 billion to RM1.92 billion.
He added that the reduction included a write-down of RM227.8 million related to completed inventories at IOI Palm International Parkhouse, reflecting the economic challenges due to the downturn in China and intense pricing competition near the Xiang An development.
"Additionally, Conezion Commercial units worth RM317.0 million were reclassified from investment property to inventories.
"Excluding these adjustments, the group achieved a notable inventory clearance rate, successfully reducing RM583.6 million worth of completed inventories, primarily from Malaysian operations during the year.
Looking into FY25, IOI Properties said its performance woukd continue to remain satisfactory, underpinned by its diversified product offerings across three countries.
This is particularly from the upcoming launch of Marina View Residences, sizeable recurring income stream from its established property investment portfolio and the favourable outlook of the hospitality and leisure segment.