IOI Properties Q4 earnings fall 37pct on lower fair value gains

In the fourth quarter of 2026, IOI Properties Group Bhd experienced a significant decrease in net profit, falling by 36.5% to RM523.11 million, as opposed to RM823.93 million the previous year. This decline was primarily attributed to reduced fair value gains on their investment properties. In contrast, the company's revenue saw a notable surge of 55.7% to RM1.39 billion from RM890.21 million, largely due to the strong performance of the South Beach office tower and JW Marriott operations in Singapore, along with increased property development revenue following the recognition of a land sale in Ampang.

For the entire fiscal year 2026, IOI Properties reported an impressive doubling of its net profit, reaching RM2.15 billion from RM1.06 billion, and an increase in revenue to RM4.44 billion from RM3.06 billion. The property development segment played a crucial role in this growth, generating sales of RM3.91 billion, with the majority of these sales coming from Malaysian projects (RM3.53 billion, or 91%).

China's projects contributed a smaller portion, amounting to RM247.7 million (six percent). In Malaysia, the Klang Valley drove sales with RM2.65 billion, primarily from industrial land sales at IOI Industrial Park Banting and commercial land in Jalan Ampang. The group's established townships also made steady contributions. IOI Properties increased its dividend for FY26 to 16 sen per share, consisting of an interim dividend of eight sen and a special dividend of eight sen. Group CEO Datuk Lee Yeow Seng expressed cautious optimism about the company's performance in FY27, despite continuing global economic challenges and geopolitical risks.

He highlighted the group's confidence in its financial outlook for the upcoming fiscal year, driven by the strong demand for their diversified property offerings and the growing contribution from the property investment segment.