The report says that the commencement of operations at IOI Central Boulevard Towers should be viewed positively, as it represents cash flow for the property group. “IOI Central Boulevard Towers is the single-largest asset coming live for IOI Properties Group [IOIPG]. Its asset value of RM14.4 billion as at the end of June 2024 makes up a staggering 67% of the group property investment portfolio size of RM21.5 billion [$6.54 billion]. Its scale naturally translates to a significant impact on the group’s earnings — both positive and negative. While its debut has weighed on this quarter’s results, its eventual profitability will contribute substantially to IOIPG’s financial performance, underscoring its importance as a key driver of future growth,” the Hong Leong Investment Bank report says.
IOI Property Group has three core business segments: Property development, property investment, and hospitality & leisure. In an email response, the group says: “These segments have provided sustained income for its expansion plans and expediting growth especially for its malls, offices, notably IOI Central Boulevard Towers in Singapore and Hospitality sub-segments as well as its Industrial Parks in Banting, Melaka and Iskandar Malaysia.”
Notably, the outsized impact of IOI Central Boulevard Towers on the group was clear in its 1QFY2025 ended Sept 30, 2024, results. In a report dated Dec 3, 2024, Hong Leong Investment Bank says the interest payments for IOI Central Boulevard Towers have always been a part of the group’s financials; they were simply capitalised previously, keeping them “out of sight and out of mind”.
