KUALA LUMPUR, May 18 ― IOI Properties Group Bhd recorded a 49.4 per cent higher net profit of RM170.44 million in the third quarter ended March 31, 2018, compared with a year earlier.
However, the company said its pre-tax profit of RM221.7 million was down 38 per cent, year-on-year, when it excluded the previous corresponding quarter's one-off additional buyer stamp duty with interest of RM163.9 million, which was incurred for The Trilinq condominium project in Singapore, and a RM7.4 million fair value gain on investment properties.
Revenue for the quarter similarly fell to RM541.21 million from RM895.82 million a year earlier.
In a filing with Bursa Malaysia today, IOI Properties attributed the lower revenue and pre-tax profit to reduced contribution from its Klang Valley and overseas property development projects.
The property development segment posted revenue of RM409.6 million and an operating profit of RM138.3 million in the quarter under review, a drop of 47 per cent and 53 per cent, respectively, compared with a year earlier.
“The group's performance was lower in the current-year quarter mainly due to lower profit contribution from development projects in the Klang Valley (and the rest of) Malaysia and lesser units remaining for sale in both The Trilinq, Singapore, and D3 Residence in Xiamen, China,” the company explained.
Despite the challenging market conditions, IOI Properties expects to deliver satisfactory performance in the financial year 2018 due to its sizeable land bank in strategic locations both in Malaysia and overseas, as well as, unbilled sales of RM990 million on hand.
“The group will continue to embark on marketing effort and initiatives to unlock potential sales in Malaysia. On the international front, the group is launching the sale of its residential projects in Xiamen in the last quarter of the financial year,” the company said. ― Bernama