Company Overview
IOI Properties Group Berhad (IOIPG) is a Malaysian property developer and investment group with a diversified footprint across Malaysia, Singapore, and China. Its businesses span property development, property investment, and hospitality & leisure, with key assets including IOI City Mall, IOI Central Boulevard Towers (Singapore), and multiple integrated townships across Malaysia. The group is majority owned by the Lee Shin Cheng family (~65.7), and is rated AAIS (MARC).
FY25 Credit Performance Highlights
IOIPG delivered stable topline performance in FY25. Revenue rose 4% YoY to RM3.06bn, supported by stronger contributions from Property Investment and Hospitality & Leisure, which offset a softer development cycle following the absence of land sales that had boosted FY24 results. Property Development remained the largest revenue contributor at 54% (RM1.65bn), followed by Property Investment at 31% (RM945mn) and Hospitality & Leisure at 15% (RM466mn), highlighting a gradually improving but still development-weighted revenue mix.
Recurring income continued to strengthen. Property Investment revenue rose 46% YoY, driven by the full-year contribution from IOI Central Boulevard Towers, sustained high occupancy at IOI City Mall, and the acquisition of IOI Mall Damansara in December 2024. Segment operating profit increased in tandem to RM467mn, with margins remaining healthy at 49%, reinforcing the stability and cash-generative nature of the investment portfolio. Office contributions rose meaningfully as IOI Central Boulevard Towers ramped up, with commitment rates reaching 88% as at July 2025. The Hospitality & Leisure segment also showed a marked recovery. Segment revenue surged 70% YoY to RM450mn, while operating losses narrowed sharply to approximately RM5mn, from RM115mn in FY24, reflecting contributions from newly acquired and opened hotels as well as improved occupancy across refurbished assets. While the segment remains marginally loss-making, its drag on group earnings has reduced materially.
IOIPG’s credit profile remains strongly asset-backed. Total assets increased by 2% YoY to RM46.9bn, supported by fair value gains on investment properties and selective asset acquisitions, which continue to underpin collateral quality and creditor recovery prospects. Total equity stood at RM24.5bn, providing a substantial capital buffer consistent with its AAIS rating.
However, leverage remains elevated on a cash-earnings basis. Total borrowings increased modestly to RM19.6bn, largely to fund Singapore projects, while net gearing remained stable at 0.70x, reflecting an uplift in shareholders’ equity from property revaluations rather than balance-sheet deleveraging. In parallel, total debt/EBITDA rose to 10.6x in FY25 from 8.1x in FY24, highlighting higher leverage following the normalisation of EBITDA post-completion of IOI Central Boulevard Towers. Interest coverage softened as interest expense rose materially on the full-year funding impact of IOI Central, resulting in more moderate coverage metrics and reduced buffer against earnings volatility. Liquidity is adequate but requires ongoing discipline. Cash and cash equivalents increased to RM2.49bn at FY25, supported by operating cash inflows and a meaningful reduction in completed inventories to RM1.27bn, down 34% YoY, improving near-term cash conversion.
Credit view: IOIPG’s AAIS credit profile is supported by strong tangible asset backing, a robust equity base, and a steadily improving recurring-income platform. However, the credit remains liquidity-sensitive, given elevated leverage and a still development-weighted cash-flow profile.
Disclaimer
These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products.
Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance.
Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries.
The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries.
Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned.
