IOI Properties Group (IOIPG) delivered a strong FY2026 performance, with core net profit surpassing both Kenanga’s forecast and market consensus, supported by land sales and stronger property development contributions.
IOIPG’s financial year 2026 core net profit of RM796.4 mil made up 107% of Kenanga’s full-year forecast and 100% of consensus estimate.
The stronger results were largely attributable to two land transactions, which generated exceptionally high margins.
The group also announced an interim dividend of 8 sen per share, alongside a special dividend of another 8 sen, bringing the total payout for 2026 to 16 sen. This was higher than Kenanga’s forecast.
Year 2026 revenue rose by 45% and core net profit surged sharper by 174% following stronger sales from property development at RM2.2 bil from RM1.6 bil in 2025.
The company’s operating profit was also supported by RM274 mil in gains from land sales in Jalan Ampang and Melaka.
Its property investment segment also recorded stronger contributions, following its acquisition of full control over South Beach and improved occupancy at IOI Central Boulevard Towers in Singapore, which reached 88%.
Performance was further lifted by IOI City Mall Putrajaya, where the opening of Phase 2 attracted additional visitors and boosted overall foot traffic.
While its quarter four financial year 2026 (4QFY26) turnover grew by 32%, its core net profit was 9% lower largely weighed by higher taxation charges on the RM288 mil fair value gains on its investment properties recorded in the quarter.
“We expect the group to be able to achieve above RM2.0 bil sales target as it did in 2026, underpinned by a planned RM3.2 bil project launches across different segments,” said Kenanga.
The group’s sizable exposure to Singapore assets such as the South Beach office tower and the IOI Central Boulevard Tower should continue to experience ongoing positive rental reversions and rising occupancy looking ahead.
Its ongoing acquisition of Asia Square Tower 2 for SGD2.48 bil, a Grade-A office asset in the heart of Marina area, Singapore, is slated to be completed by 1QFY27.
That said, IOIPG will continue to steer the development of W Residences Singapore, Marina View, the development of IOI Industrial Park Series, the construction of IOI City Mall Phase 3 and IOI City Tower 3 in IOI Resort City, and the value unlocking of its investment properties through the ongoing REIT listing preparation, which is on track to go live, estimated by Nov 2026.
Separately, its proposed Banting land sales to Bridge Data Centre for RM741 mil that is expected to materialize by 2027 can likely reap encouraging disposal gains.—Aug 28, 2026
Main image: IOI Properties
