IOI Properties’ earnings prospects on an increase

KUALA LUMPUR: IOI Properties Bhd’s incomes prospects proceed to develop upon the anticipated completion of Central Boulevard in Singapore subsequent yr and the normalization of its enterprise segments to pre-pandemic ranges, mentioned RHB Analysis.

In keeping with the dealer, the Central Boulevard workplace towers is predicted to be well-received when its development is accomplished in 2023, with administration indicating that the preliminary response for leasing appears promising.

“We’re optimistic on the rental prospects of this asset as high quality workplace area is extremely wanted with the growth of regional know-how/telecommunication sectors lately,” mentioned the analysis agency in a report.

It added {that a} conservative rental charge of S$10-11 psf ought to generate RM450-450mil in rental earnings per yr, forming a great earnings base for the corporate to lift its dividend payout.

In the meantime, Section 2 of IOI Metropolis Mall, which is about to open in June or July, has a dedicated tenancy of over 70% incuding 4 anchor tenants.

“We estimate that Section 2 ought to contribute about MYR30-40m pa in rental earnings (assuming 75% occupancy) through the preliminary years of operation,” mentioned RHB.

The analysis agency famous that the group has a RM2.1bil gross sales goal for FY22, which is predicted to be met primarily by gross sales of China tasks in 2HFY22.

It mentioned following the top of the Residence Possession Marketing campaign in Malaysia, gross sales shall be underpinned by about MR960mil in property launches in Xiamen/Xian An final December.

RHB maintained its “purchase” name and goal worth of RM1.38 on IOI Properties.


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