KUALA LUMPUR (Aug 27): IOI Properties Group Bhd's fourth quarter net profit dropped 21.3% year-on-year to RM264.99 million from RM336.64 million, due to reduced contribution from its overseas property projects.

Earnings per share for the quarter ended June 30, 2018 fell to 4.81 sen from 5.79 sen a year ago, the group said in filing with Bursa Malaysia.

Quarterly revenue slumped 43.6% to RM673.98 million from RM1.195 billion a year ago.

IOI Properties said its property development segment recorded revenue and operating profit of RM544 million and RM150.5 million respectively, which is 49% and 69% respectively lower than the corresponding quarter of the preceding year.

The group said its performance was lower predominantly due to lower profit contribution from development projects overseas arising from fewer units remaining for sale in both Trilinq, Singapore and D3 Residence in Xiamen, China.

For the full year, IOI Properties recorded a 14.9% fall in net profit to RM783.63 million from RM920.87 million in the previous year, with revenue declining 33.3% to RM2.793 billion from RM4.185 billion.

The group has declared an interim single tier dividend of five sen per share, payable on Sept 28.

On its prospects, IOI Properties said the government's new initiatives and efforts, such as the substitution of the goods and services tax with the sales and service tax, abolishment of the fuel price floating mechanism, and consolidation of affordable housing under one roof, are expected to boost domestic market sentiments and increase optimism with renewed consumer confidence.

"The group remains cautiously optimistic that demand for properties in strategic locations with good transportation infrastructure and close proximity to amenities will continue to draw prospective buyers," it said.

On the international front, the group is expecting higher sales contribution from its residential development in Xiamen in the coming financial year, while the marketplace expectations on the Singapore government's recently introduced new curbs on residential properties indicate that the effects could be temporary.

"Barring any unforeseen circumstances, the group is expected to continue to deliver satisfactory performance in the coming quarter," it added.

IOI Properties’ share price fell one sen or 0.56% to RM1.78 today, with a market capitalisation of RM9.8 billion.