KUALA LUMPUR: IOI Properties Bhd's earning prospects continue to grow upon the expected completion of Central Boulevard in Singapore next year and the normalisation of its business segments to pre-pandemic levels, said RHB Research.

       According to the broker, the Central Boulevard office towers is expected to be well-received when its construction is completed in 2023, with management indicating that the initial response for leasing looks promising.

       "We are optimistic on the rental prospects of this asset as quality office space is highly sought after with the expansion of regional technology/telecommunication sectors in recent years," said the research firm in a report.

       It added that a conservative rental rate of S$10-11 psf should generate RM450-450mil in rental income per year, forming a good earnings base for the company to raise its dividend payout.

       Meanwhile, Phase 2 of IOI City Mall, which is set to open in June or July, has a committed tenancy of over 70% incuding four anchor tenants.

       "We estimate that Phase 2 should contribute about MYR30-40m pa in rental income (assuming 75% occupancy) during the initial years of operation," said RHB.

       The research firm noted that the group has a RM2.1bil sales target for FY22, which is expected to be met mainly by sales of China projects in 2HFY22.

       It said following the end of the Home Ownership Campaign in Malaysia, sales will be underpinned by about MR960mil in property launches in Xiamen/Xian An last December.

       RHB maintained its "buy" call and target price of RM1.38 on IOI Properties.