PETALING JAYA (Nov 23): IOI Properties Group Bhd (IOIPG) recorded a stellar performance for the first quarter ended Sept 30, 2022 (1QFY2023), recording net profit of RM640.29 million, which was three times higher than 1QFY2022's.

The property development group attributed the outstanding performance to improvements across all its business segments particularly the hospitality and leisure segment, which saw a sterling recovery of more than 400% in revenue.

Profit before tax was recorded at RM689.7 million following a recognition of fair value gain of RM470.4 million arising from the completion of IOI City Mall Phase 2 and a strong turnaround of hospitality and leisure and property investment segments, the group noted.

"IOIPG has continued to deliver resilient results despite the challenges. I am confident that we are on the right track to achieving our targets in FY2023 as our business segments are well positioned for sustained growth," said Datuk Voon Tin Yow, chief executive officer of IOIPG.

The group's property development segment saw its revenue increase by 46% to RM529.9 million compared with the preceding year corresponding quarter, due to higher sales contributions from Malaysian operations despite the property industry being impacted by inflationary pressures and global supply chain disruptions.

Meanwhile, its property investment segment's revenue rose to RM110.1 million, an improvement of 86% in performance compared with the preceding year corresponding quarter. This substantial increase was mainly due to the low base effect recorded for 1QFY2022, and partially contributed by the commencement of recurring leasing income from IOI City Mall Phase 2.

IOIPG's hospitality and leisure segment saw its contributions to the group's top line increase to RM48.7 million during the quarter, compared with RM7.6 million in the corresponding quarter. This was due to the resilient domestic tourism that has driven the hospitality industry to gradually regain its momentum, said IOIPG.

Despite the improvements in the local market, IOIPG said that the global business environment remains challenging due to uncertainties and challenges coming from rising cost pressures, tighter financial conditions and geopolitical tensions.

Nevertheless, the group is looking forward to its pipeline of projects, mainly comprising affordable landed and high-rise developments worth RM1 billion to be launched within Malaysia.

"The rise in interest rates and cost of living has increased the demand for affordably priced homes within the housing market. Hence, our product range will remain flexible to meet the rising demand in this space," said Voon.

IOIPG closes 0.98% or one sen lower at RM1.01 on Wednesday (Nov 23), valuing the group at RM5.56 billion.