KUALA LUMPUR: IOI Properties Group Bhd posted a net profit of RM59.72mil in the third quarter ended March 31 (3Q22) from RM178.75mil a year ago.

       The developer said excluding property development costs written down of RM111mil and net foreign currency translation gain on foreign-denominated borrowings and deposits, the group’s underlying pretax profit of RM324.6mil for the current year quarter is RM42.9mil or 15% higher than the preceding year's corresponding quarter of RM281.7mil.

       Revenue, however, jumped 27.44% to RM737.79mil from RM578.95mil last year mainly attributable to better performance contributed from all business segments.

       In the property development segment, IOI Properties 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.

       Its property investment segment recorded a 38% rise in revenue to RM99.7mil and a 48% increase of operating profit to RM48.7mil for 3Q22 compared to the preceding year's corresponding quarter.

       For the hospitality and leisure segment, the group reported a 57% increase in revenue to RM30mil compared to the preceding year's corresponding quarter pursuant to rising domestic demand in view of the relaxation of travel restrictions.

       “Amidst the challenges in Malaysia, proactive measures have been taken to drive sales of its mid-priced range of products by leveraging on the group’s digital marketing capabilities and aggressive campaigns,” IOI Properties 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.

       In response to the current challenges arising from the strict operating procedures and movement controls implemented by the China government which have affected our mall operations in Xiamen, the group will adopt an active and pragmatic tenant retention strategy to maintain occupancy rates.

       Meanwhile, the completed residential developments of IOI Palm City and IOI Palm International Parkhouse in Xiamen, China will continue to contribute towards the group’s financial performance, it said.

       “Across the border, the group’s new acquisition of a mixed-use development site in Singapore, comprising residential and hotel components in the Marina Bay area, complements its existing developments in the Lion City.

       Since the acquisition, IOI Properties said it is in the midst of planning the development of the land. At IOI Central Boulevard Towers, leasing activities have received strong responses from reputable multinational companies. This is in anticipation of its expected completion in 2023.

       “We foresee robust recovery of all sectors of the economy as we reopen our borders and transition into the endemic phase,” chief executive officer Datuk Voon Tin Yow said

       “Therefore, we expect an increase in consumer confidence nationwide that will generate a steady rise of demand within the property market,” he added.