IOI Properties Group Bhd’s upcoming real estate investment trust (REIT) listing could act as a catalyst for further share price gains, despite the stock rising 17% year-to-date.
The group plans two REIT listings in Malaysia and Singapore, with the Malaysian listing targeted for June 2026, according to UOB Kay Hian Research.
Using a sum-of-the-parts framework, the research house estimates an additional 9% to 16% upside for IOI Properties’ share price, supported by continued yield compression among prime REITs in Malaysia.
“Our calculation assumes an asset value of RM7 billion and a target valuation of 1.5 times price-to-book (P/B) for the REIT, in line with peers with prime retail assets, alongside a retained stake of 60% to 70%,” the report said.
Post-listing, IOI Properties’ net gearing is expected to improve to 0.91–0.94 times from 0.97 times as of end-Q1 FY26, while implied FY26 P/B rises to 0.9 times from 0.7 times. UOB Kay Hian has set a RM3.50 target price for the stock.
Hong Leong Investment Bank takes a more bullish view, assigning a RM4.15 target price, citing the group’s diversified presence across Malaysia, Singapore and China.
A dealer noted the recent rally reflects growing market recognition of IOI Properties’ expanding recurring income base and longer-term REIT monetisation potential. “Over the past year, shares have gained 50% as investors re-rate the stock on strong overseas earnings momentum and expanding recurring income,” he said.
At the time of writing, IOI Properties was trading around RM3.10 per share.
