KUALA LUMPUR (May 30): IOI Properties Group Bhd’s (KL:IOIPG) net profit for its third quarter ended March 31, 2024 (3QFY2024) rose 90.9% to RM220.21 million from RM115.38 million a year earlier, mainly thanks to the completion of a land sale in Johor

The group said the RM211.1 million recognised from the land sale also helped revenue increase 59.8% to RM902.19 million, from RM564.67 million in 3QFY2023.

Topline growth was also fuelled by higher commercial properties sales, successful leasing progress of IOI City Mall Phase 2 and contribution from W Hotel KL, the group said in a bourse filing on Thursday.

IOI Properties did not declare any dividend for 3QFY2024.

For the nine months ended March 31, 2024 (9MFY2024), IOI Properties posted a 55.4% decline in net profit to RM516.15 million as compared to RM1.16 billion in the same period a year earlier.

“However, excluding fair value gain, reversal of inventories written down, and impairment loss, the underlying profit before tax (PBT) in 9MFY2023 derived at RM688.5 million," the group said, noting that the underlying PBT for 9MFY2024 stands 8% lower at RM630.2 million.

“The decline in PBT was primarily due to the weaker contribution from our property development segment in China, which recorded lower sales,” it added.

IOI Properties said sales from its property development segment stood at RM1.59 billion for the nine-month period, 92% of which was contributed by local projects.

“Within Malaysia, the sales secured were largely from Johor at RM669.3 million, led by sales from established townships such as Bandar Putra Kulai and Taman Kempas Utama,” the group said.

Looking to the final quarter of the financial year, IOI Properties said the group is optimistic of a satisfactory performance, adding that its property development segment in the Klang Valley is poised to improve with a strong pipeline of launches while its Johor projects are well-capitalised on various proposed initiatives taking shape in the state.

“Complementing the property development segment, the recurring income from established property investment portfolios and improving prospects for the hospitality and leisure segment will provide the group with a strong foundation for sustained earnings ahead,” it added.

Shares in IOI Properties ended four sen or 1.61% lower at RM2.44 on Thursday, valuing the group at RM13.43 billion.