IOI Properties Profit Rises in Third Quarter of 2026, Driven by RM1.35 Billion Land Sales

KUALA LUMPUR, May 2026 — IOI Properties Group Berhad recorded stronger earnings momentum in the third quarter of its financial year 2026, supported by aggressive land monetisation activities and improved contributions from its property investment assets.

According to DagangNews, MBSB Research said the group’s value-unlocking strategy has started to deliver positive results, especially through land sales worth RM1.35 billion across several locations. These transactions involved assets in Banting, Iskandar Malaysia and Jalan Ampang, helping to draw investor attention to the hidden value within IOI Properties’ landbank.

For the third quarter ended March 31, 2026, IOI Properties reported revenue of RM1.047 billion, compared with RM755.16 million in the same quarter last year. Its profit for the period rose to RM258.59 million, while profit before tax stood at RM348.01 million.

The stronger quarterly performance reflected both operating improvement and gains from land disposal activities. MBSB Research said IOI Properties’ core earnings for the first nine months of FY2026 reached RM566.8 million, exceeding its expectations and already accounting for 98% of its full-year forecast.

The research house noted that profit growth was mainly driven by the recognition of land sales during the quarter, including a RM130 million land sale in Melaka, better profit margins and lower interest costs. These factors helped strengthen the group’s overall earnings performance.

MBSB Research also said IOI Properties’ gross profit margin improved to around 61.5%, compared with 57.6% in the previous quarter. The improvement was supported by the land transactions, which generally carry stronger margins compared with conventional property development sales.

On a year-on-year basis, IOI Properties’ core profit for 3QFY26 surged 134.7%, while cumulative core profit for the first nine months of FY26 more than doubled, rising 101.5% from the previous corresponding period.

The group’s new sales also recorded a sharp increase, reaching RM1.7 billion in 3QFY26. This was mainly driven by land sales worth RM1.35 billion, which helped lift total cumulative sales for 9MFY26 to RM2.71 billion.

Unbilled sales also rose significantly to RM2.1 billion, compared with RM853 million in the previous quarter. This gives IOI Properties stronger earnings visibility over the coming quarters, as unbilled sales represent secured sales that have yet to be recognised as revenue.

Apart from land monetisation, the group’s performance was also supported by stronger contributions from its Singapore assets. MBSB Research highlighted contributions from JW Marriott Singapore South Beach, South Beach Avenue and South Beach Tower following the acquisition of the remaining 50.1% equity interest in Scottsdale Properties Pte Ltd.

Rental income from IOI Central Boulevard in Singapore and IOI City Mall in Putrajaya also helped support the group’s earnings growth. These assets remain important to IOI Properties’ recurring income base, especially as the group continues balancing property development with investment properties.

Following the stronger-than-expected performance, MBSB Research raised its earnings forecasts for IOI Properties for FY26 to FY28 by 22.6%, 16.3% and 14.3%, respectively. The research house maintained its Buy recommendation with an unchanged target price of RM4.64, based on an 18% discount to revised net asset value.

The upgrade in earnings expectations reflects growing confidence that IOI Properties’ active land monetisation strategy can unlock more value from its large landbank. In earlier notes, MBSB Research had described land disposal as positive because it could improve cash flow, reduce debt and strengthen the group’s financial flexibility.

However, IOI Properties’ gearing level remains a key area to watch. MBSB Research noted that the group’s net gearing ratio was still high at 0.86 times in 3QFY26, although active land value generation is expected to help reduce debt pressure over time.

The group’s ongoing land sales also come at a time when Malaysia’s property market is seeing stronger demand for industrial, commercial and mixed-use assets, especially in strategic locations with infrastructure access and development potential.

For investors, IOI Properties’ latest results show that land monetisation can become a meaningful earnings driver beyond traditional property sales. Instead of relying only on new launches, the group is using selected land disposals to unlock asset value, strengthen its balance sheet and support future development plans.

The company’s diversified portfolio also gives it exposure to multiple growth segments, including residential property, commercial development, retail malls, hospitality assets and investment properties in Malaysia and Singapore.

Overall, IOI Properties’ 3QFY26 performance shows stronger earnings momentum, supported by RM1.35 billion in land sales, improved margins, stronger recurring income and higher unbilled sales.

With MBSB Research maintaining its Buy call and RM4.64 target price, the group is expected to remain on investors’ radar as a property stock with asset-unlocking potential and improving earnings visibility.