IOI Properties Q2 net profit 11% lower

PETALING JAYA: IOI Properties Group Bhd saw its net profit in the second quarter ended Dec 31, 2016 (Q2FY17) fall 10.95% to RM273.53 million, from RM307.17 million in the previous corresponding quarter, mainly due to lower share of results of joint ventures derived from net fair value gain.
After excluding the net fair value gain of RM121 million, the group’s profit before taxation for the current quarter is RM82.8 million or 26% higher than the corresponding quarter in 2015.
Revenue surged 33.05% to RM1.19 billion, from RM894.4 million in the same period last year, driven by higher revenue from its three business segments namely property development, property investment, as well as leisure and hospitality.
In a statement yesterday, the group said revenue from its property development segment increased 36% to RM1.07 billion, from RM785.5 million previously, reflecting higher and favorable sales take-up rates for projects in Singapore and IOI Resort City Putrajaya, 16 Sierra and Bandar Puteri Bangi.
In property investment, the group saw an increase in revenue of 12% from RM69 million to RM77.5 million, due to the increase of average occupancy rates and upward rate revision from tenancy renewal of IOI City Mall.
For the six months period, its net profit grew 9.57% to RM463.09 million, against RM422.64 million a year ago, while revenue jumped 40.3% to RM2.09 billion, from RM1.49 billion previously.