KUALA LUMPUR (Aug 28): IOI Properties Group Bhd closed its financial year ended June 30, 2023 (FY2023) with net profit doubling to RM1.39 billion from RM686.74 million in FY2022, thanks to a 26% increase in operating profit in its property investment portfolio and a fair value gain that contributed RM716.8 million, while revenue was largely unchanged at RM2.59 billion.

In a statement, the group said its stronger annual profit demonstrates its robustness in managing through economic fluctuations and business cycles as the value of its investment properties matures.

It announced an interim dividend payout of five sen per share, higher than the four sen it announced for FY2022. The last time the group paid a five sen dividend was in FY2018.

For FY2023, IOI Properties said its property development segment achieved sales with contracts exchanged of RM1.96 billion, of which 85% was from local projects, while the remaining 15% was from overseas projects in China and Singapore.

“In Malaysia, the sales secured were largely from the Klang Valley region at RM854.1 million, led by our integrated development at IOI Resort City in Putrajaya and our matured township at Bandar Puteri Puchong in Selangor,” said the group in a statement.

“Johor continues to outperform with a sales contribution of RM772 million. This was led by the established townships at Bandar Putra Kulai and Taman Kempas Utama. Notably, Bandar Putra Kulai has been leading our sales with wide product offerings ranging from single-storey, double-storey terrace and semi-detached residential products catered for homeowners, to bustling commercial shop offices for business proprietors. In total, RM1.19 billion worth of properties were launched during the year with an average take-up rate of 69%,” the group added.

The stronger yearly profit came despite a 19.52% drop in its final quarter’s net profit to RM235.37 million from RM292.48 million a year ago, mainly due to its property development segment’s lower performance. Quarterly revenue dipped 6.91% to RM666.46 million from RM715.94 million.

Looking ahead, IOI Properties said its diverse product offering in established townships will see mid-priced residential and commercial units offered at 16 Sierra, Bandar Puteri Puchong, Bandar Puchong Jaya, Warisan Puteri, Bandar Puteri Bangi while industrial plots are offered in the rebranded IOI Industrial Park located at Banting in the Klang Valley.

“Over in Johor, capitalising on the strong demand, launches will be focused in Bandar Putra Kulai followed by launches at the townships of Bandar IOI Segamat, Taman Kempas Utama and our industrial park at iSynergy in Senai,” said IOI Properties.