KUALA LUMPUR: IOI Properties Group Bhd's net profit declined to RM69.17 million in the first quarter (1Q) ended Sept 30, 2024, from RM174.45 million in the same period last year.

In a filing with Bursa Malaysia today, the property developer also recorded a profit before tax of RM133.7 million, a 41 per cent drop from RM225.5 million previously due to higher interest expense following the completion of IOI Central Boulevard Towers since April 2024.

Revenue for 1Q, however, increased by six per cent to RM687.85 million from RM648.05 million a year prior, mainly attributed to improved performance in the property investment segment and hospitality and leisure segment, the group said.

It said the property investment segment recorded revenue and operating profit of RM218.7 million and RM133.4 million, respectively, for the current year quarter.

"This marks an increase of RM74.4 million or 52 per cent and RM61.8 million or 86 per cent, respectively, higher than the preceding year's corresponding quarter.

"The revenue in the hospitality and leisure segment has improved to RM110.7 million from RM48.8 million, primarily driven by contributions from the newly acquired W Kuala Lumpur and the opening of Moxy Hotel in February 2024 and the newly acquired Courtyard By Marriott Penang in July 2024," it said.

On prospects, IOI Properties expects the financial performance for the year to remain satisfactory, underpinned by its diversified product offerings across three countries, sizeable recurring income stream from its established property investment portfolio and the positive outlook of the hospitality and leisure segment.

In a separate statement, group chief executive officer Lee Yeow Seng said the group will continue to monitor the market and strategically time its launches to achieve a good take-up rate and sustain earnings.

Additionally, he said that the group's concerted efforts to clear completed inventories had yielded a further reduction of RM179.9 million, bringing the completed inventories down to RM1.74 billion, which was partially due to foreign exchange adjustments of the completed inventories in the People's Republic of China.

"This enables immediate monetisation into cash flow to support the group's ongoing capital commitments and working capital requirements.

"We remain focused on reducing the completed inventories further through strategic product positioning and promotional sales campaigns," he added.