IOIPG set for steady FY26 growth

PETALING JAYA: IOI Properties Group Bhd’s (IOIPG) performance in financial year 2026 (FY26) should be supported by resilient domestic sales and improving traction in China, according to TA Research.

It also expects the upcoming launch of W Residences at Marina View to be a potential catalyst for stronger sales and earnings.

“IOIPG has maintained its FY26 sales target of RM2bil, representing 10% year-on-year growth (excluding Marina View),” the research house said.

It anticipates sales in the first quarter of FY26 to be within expectations, supported by steady take-up in Malaysia’s mid-market and township segments.

TA Research believed aggressive repricing in second half of FY25 in China has helped clear unsold inventory and reignited buyer interest despite a still-challenging environment.

In Singapore, IOI Central Boulevard Towers and South Beach form a S$7bil portfolio in the central business district, enhancing recurring income visibility and paving the way for a future Singapore real estate investment trust (REIT) following the Malaysia-REIT slated for the end of 2026.

The research house noted that IOIPG’s flagship development in Singapore, W Residences Marina View, with a gross development value of S$3.65bil, is slated to be launched this month.

It pointed out that the management is guiding for an average selling price of S$5,000 per sq ft.

For FY26, TA Research forecasts total new sales of RM3.8bil, comprising RM2bil from Malaysia and China, and RM1.8bil from Singapore, anchored by a 15% take-up assumption for W Residences.

“We view this as a base case, given management’s target of 25% take-up within the first year. With its prime location and brand strength, there is room for upside should launch momentum outperform expectations,” it said.

The research house noted that recurring income continues to expand, driven by firm rental reversions and improving hotel performance ahead of Visit Malaysia 2026.

“IOIPG’s earnings base is becoming increasingly diversified, with property investment and hospitality collectively contributing 42% of total revenue in FY25, up significantly from just under 20% in FY22.

“We expect this momentum to continue, particularly within the property investment segment, where IOI City Mall has stood out with ongoing positive rental reversions that continue to anchor the group’s recurring income growth,” TA Research explained.

It said the hospitality segment is also benefitting from rising tourist arrivals and the build-up to Visit Malaysia 2026, reflected in higher occupancies and room rates.

“With stable cash flows, IOIPG is progressing toward its Malaysia-REIT listing by the end of calendar year 2026.

“The initial portfolio is expected to include IOI City Mall, along with selected office and hotel assets,” it said.

The research house added that the net impact to its FY26 to FY28 earnings forecasts is marginal, at 0.7% to 1.1%.

It has maintained its “buy” recommendation on IOIPG with an unchanged target price of RM2.78 per share.