KUALA LUMPUR, Aug 29 ― IOI Properties Group Bhd posted a lower net profit of RM47.94 million for the fourth quarter ended June 30, 2020 copared with RM139.76 million for the preceding year corresponding quarter.
The Group recognised a fair value and impairment losses on investment properties of RM104.8 million in the current year quarter, mainly attributable to the office sub-segment due to challenging market condition caused by the Covid-19 pandemic, it said in a filing with Bursa Malaysia today.
Revenue stood at RM610.47 million compared with RM497.79 million previously.
Net profit for the full financial year also declined to RM455.69 million compared with RM661.29 million previously, while revenue stood at RM2.11 billion versus RM2.19 billion before.
On the outlook, it said the business environment remains challenging due to the Covid-19 pandemic, volatility of oil prices and increasing geopolitical tensions
The group will continue to leverage its digital marketing capabilities and IOI e-Marketplace platform to expedite property transaction processes.
“To garner sales, we will also adopt aggressive sales and marketing strategies and implement innovative initiatives to enhance the customer experience. The Group remains optimistic on the longer-term prospects of its projects as its developments and assets are located at strategic locations with good infrastructure networks and amenities, and supported by experienced and professional management teams,” it said.
The property investment segment has adopted active and pragmatic tenant retention strategies in order to maintain occupancy rates and to support our business partners and tenants in the interest of long-term sustainable collaborations, and this has shown positive results.
“We expect the reintroduction of Home Ownership Campaign under the National Economic Recovery Plan (Penjana) helps boost the housing market in Malaysia. We will emphasise on mid-price range products to meet the market demands as the trend in our existing townships indicates that mid-price range units are most sought-after,” the Group said.
In Singapore, the construction progress of Central Boulevard development has been affected by the Circuit Breaker imposed by Singapore government since April 7, 2020.
Construction at the site has slowly resumed recently but the resumption of work progress to pre-Covid-19 pandemic level may take some time.
“The Group will continue to ensure strict adherence to health and safety guidelines whilst taking measures to catch up on the construction progress. The completion for this development is expected to be in the year 2023.”
It said China’s operations, however, registered strong sales performance during the fourth quarter due to the pent up demand following China's recovery from the Covid-19 pandemic.
“We expect the demand for residential properties to normalise and consequently, the strong sales performance to moderate during the next few quarters,” it added. ― Bernama
