PETALING JAYA, IOI Properties Group Bhd (IOIProp), which announced its fourth-quarter results for the period ended June 30, 2025 (4Q25), is gearing up to launch RM2 billion worth of property projects in Malaysia, with its property investment division expected to remain the main earnings driver.
Despite a 14% year-on-year increase in revenue, the developer’s net profit for 4Q25 fell 47%, weighed down by lower fair-value gains from investment properties and higher interest costs. IOIProp also declared an interim dividend of eight sen per share.
Analyst opinions remain mixed. Hong Leong Investment Bank Research maintained its “buy” call with an unchanged target price of RM4.05, citing expectations of a stronger earnings recovery than the market anticipates. It also highlighted the group’s planned real estate investment trust (REIT) listing, which should unlock asset value.
Meanwhile, MBSB Research maintained a “neutral” stance, citing weak earnings visibility and elevated net gearing of 0.7 times. The research house cut its earnings forecasts for FY26 and FY27 by 38% and 32%, respectively, revising its target price to RM2.09 from RM2.15.
TA Research, however, reiterated a “buy” call with a target price of RM2.78, pointing to the group’s FY26 project pipeline, which includes high-rise developments in Bandar Puteri Puchong, 16 Sierra, and IOI Resort City, as well as landed homes in Kulai, Johor, where demand remains resilient. The firm noted that the property investment segment continues to underpin earnings, supported by stable recurring income and a 6% rental reversion across its retail portfolio, which lifted mall valuations.
TA Research added that the group’s hospitality and leisure segment stands to benefit from Visit Malaysia 2026, though challenges persist at its recently opened Sheraton Grand Xiamen Jimei in China.
To support the planned REIT listing, IOIProp has incorporated a new subsidiary and appointed Maybank Investment Bank Bhd and AmInvestment Bank Bhd as joint principal advisers. The company has guided for the REIT to be listed within 12 to 18 months.
