With the completion of IOI Central Boulevard Towers, IOI Properties will stand to collect an annual income of around $200 million, estimates Lee. This will add significantly to the company’s revenue from investment properties, which stood at RM491 million in FY2023, up from RM364 million in FY2022. As a proportion of total revenue, that’s an increase from around 14% to nearly a fifth. With this additional cash flow, the company will be able to reduce its gearing, which stands at 67.5% as at June 30.
Over the past six months, IOI Properties shares have surged by around 50% to close at RM1.77 ($0.51) on Oct 18. In contrast, many listed developers here have traded sideways at best. Rather than press on this distinction, CEO Lee Yeow Seng diplomatically points out that different property companies are going through different phases. Some might be taking a hit from the valuation of their London assets; others may be hurt because of exposure in China and Hong Kong.
Despite the recent gain, IOI Properties’ share price is still at 0.44x of its NAV per share of RM4.05 as at June 30. Lee prefers to focus on how he can create value for shareholders rather than lamenting about this gap.
