IOI Properties

[winston]

not vested

IOIProp’s performance set to improve in coming quarters

The results shortfall was due to weaker-than-expected property sales and lower-than-expected contribution from joint ventures (JV) and associates.

IOI Prop’s business prospects in Malaysia, Singapore and China are currently seeing a rejuvenation and the group will see significant value from its assets in Singapore, IOICB and Marina View Residences.

Source: the Star

https://www.thestar.com.my/business/bus ... g-quarters

[winston]

not vested

Still Scope For Further Re-rating

Tepid take-up of W Residences at Marina View should gradually improve on:
a) potential re-strategising of products,
b) the narrowing price gap with prices of nearby launches, and
c) revision of ABSD for foreign buyers, if any.

Nevertheless, IOICB’s maiden earnings contribution in 2QFY26 should offset the carrying cost of W Residences Marina View’s launches in Oct 25, supported by a falling SORA.

Maintain BUY with higher target price of RM3.50 as we narrow our discount to RNAV to 30%, to reflect the potential valuation uplift from the REIT listing, with peers are trading at 1.5x FY26F P/B (vs the group’s current 0.7x).

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

1H26 earnings ahead; narrowed RNAV disc.

1HFY26 core net profit of RM363m was above expectations (48% of our and Bloomberg consensus estimates) as we anticipate stronger earnings ahead.

We view potential FBM KLCI inclusion as a re-rating catalyst; we estimate an additional 11% uplift in market capitalisation is required for the inclusion.

Reiterate Add with a higher RNAV-based TP of RM4.08, reflecting earnings upgrades and narrowed RNAV discount.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 9CD4B91135

[winston]

IOI Properties plans REIT listing backed by RM7.58bil assets

The proposed REIT will involve the injection of retail, office and hotel assets with a combined value of about RM7.58bil, alongside an offering of up to 2.2 billion units

Disposal of key assets such as IOI City Mall, IOI City Towers and several hotel properties, including W Kuala Lumpur and Le Méridien Putrajaya, to the REIT.

Satisfied via the issuance of 5.5 billion units at an indicative price of RM0.90 each, as well as RM2.65bil in cash.

Source: The Star

https://www.thestar.com.my/business/bus ... bil-assets

[winston]

not vested

5249 IOIPG (BUY)
Malaysia REIT listing by 4Q26

IOIPG announced the establishment of IOIPG REIT, with listing targeted for completion by 4QCY26.

IOIPG will inject a portfolio of assets valued at RM7.58bn, comprising a mix of retail, hotels and offices into the REIT.

IOIPG is expected to receive approximately RM4.26bn in cash proceeds from the REIT listing.

Including the listing exercise and recent land sales, its net gearing is expected to decline to 68.8% from 89.6% as at 31 Dec 2025.

Earnings impact from the listing exercise is expected to be broadly neutral, with dilution from the reduced stake largely offset by interest and depreciation savings.

Maintain forecasts and our conviction BUY recommendation with TP of RM4.15 based on 30% discount to our estimated RNAV of RM5.93.

Source: HLIB

[winston]

not vested

IOI Properties’ REIT listing could unlock special dividend in FY2027

By Jean MacKillop

Based on the assumption of a 20% payout from the RM4.26 billion cash monetisation of the REIT exercise, this would translate into roughly 15 sen per share in additional dividends, while a similar 20% payout from land sale gains could contribute another two sen.

Combining these with an estimated normal DPS (distribution per share) of 11 sen, total FY2027 DPS could reach about 28 sen, implying a compelling dividend yield of about 7.7%."

The REIT listing also demonstrates IOI Properties' value-creation ability: IOI City Mall saw a 161% appreciation to RM5.1 billion versus its RM1.95 billion cost, Le Méridien Putrajaya recorded a 154% uplift, and W Hotel KL — acquired in 2024 — is now valued 53% above its purchase price.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/799551

[winston]

not vested

5249 IOIPG (BUY)
The bigger value unlocking lies in Singapore

The upcoming REIT listing marks the first step in unlocking value from IOIPG’s Malaysia assets, but the larger re-rating driver lies in its Singapore portfolio, which is over three times larger.

This is further underpinned by a structural upcycle in the Singapore office market, with tight supply and strong demand supporting the future rental reversion at ICBT.

Meanwhile, the China segment is emerging as a quiet compounder as assets transition into recurring income, supported by improving traction and upcoming metro connectivity.

Maintain forecast and conviction BUY rating with a higher TP of RM5.20 (from RM4.15).

Source: HLIB

[winston]

not vested

Asia Square Tower 2 Acquisition Positive To Earnings

IOIPG’s Asia Square Tower 2 acquisition appears opportunistic, with a 2% discount to market valuation and cap rate of 3.3%, largely in line with that of core CBD at 3.3%-3.4%.

The acquisition translates to a net yield of about 1%, or annual earnings forecast of RM74m for FY27, with its Singapore interest rate assumption at 2.25%. This provides buffer against potential interest rate volatility.

Maintain BUY with higher target price of RM4.50 from RM4.00, based on higher RNAV upon completion of Malaysia REIT listing.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

Singaporean portfolio expands, along with raised gearing

IOIPG today announced the acquisition of Asia Square Tower 2, a premium Grade A office asset located in Marina Bay, Singapore, for S$2.476bn.

We are neutral on the acquisition, as incremental recurring income from the prime office asset is offset by concerns over an elevated balance sheet.

Reiterate Add and RM4.08 TP.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 5A850CC022

[winston]

not vested

5249 IOIPG (BUY)
Acquisition of Asia Square Tower 2

IOIPG announced that it is acquiring Asia Square Tower 2, a grade A office with 773,460 sqft NLA located in the Marina Bay CBD area for a purchase consideration of SGD2.476bn (SGD3,201 psf).

We think the valuation is fair, being priced at a 1.98% discount to the independent valuation by Savills. We are positive on the acquisition, underpinned by
(i) our bullish view on the Singapore office market, driven by a structural supply-demand mismatch,
(ii) the strengthening of IOIPG’s presence within the key Marina Bay precinct, and
(iii) its addition to the group’s portfolio of fully owned prime assets, which could eventually seed a pure-play Singapore commercial real estate private fund.

Maintain forecasts and our conviction BUY recommendation with TP of RM5.20 based on 20% discount to our estimated RNAV of RM6.50.

Source: HLIB