PETALING JAYA: IOI Properties Group Bhd (IOIProp) achieved a revenue of RM737.8mil for its third quarter ended March 31, which is an increase of 27% compared to the preceding year’s corresponding quarter.

       The increase in revenue was mainly due to better performance by all business segments, the company said in a statement.

       In the property development segment, the group registered an increase of 25% in revenue to RM605.9mil and an increase of 45% in operating profit to RM265mil compared to the preceding year’s corresponding quarter.

       “The hike in revenue and operating profit in the current year quarter is mainly attributable to further progress made in construction activities for ongoing developments and the higher number of vacant possession of completed projects that had been disrupted by the lockdown in Malaysia in the previous quarters,” the company said.

       The group’s property investment segment recorded a 38% rise in revenue to RM99.7mil and a 48% increase of operating profit to RM48.7mil for the quarter under review compared to the preceding year’s corresponding quarter.

       This is attributed to the commencement of recurring leasing income from IOI Mall Xiamen, China.

       For the hospitality and leisure segment, the group reported a 57% increase in revenue due to rising domestic demand in view of the relaxation of travel restrictions.

       It also recorded a decrease in operating loss of 1% to RM7.4mil, mainly due to low operating costs arising from wage subsidy and rebates in electricity charges in the preceding year’s corresponding quarter.

       “IOIProp remains vigilant of the economic challenges faced within the borders and beyond,” the company said.

       Meanwhile, for the office segment, the group is experiencing a marginal erosion of overall occupancy and rental rates despite the competitive environment in Malaysia.For the hospitality and retail segments, IOIProp anticipates a recovery to pre-pandemic levels, it said.

       “In the meantime, digital marketing efforts and innovative solutions continue to serve as key drivers of value propositions for mall tenants and hotel guests.”