PETALING JAYA: I-Bhd’s net profit surged 61.61% to RM8.33 million for the fourth quarter ended Dec 31, 2022 compared with RM5.16 million in the corresponding quarter last year, attributed by higher revenue for its property development, property investment as well as leisure and hospitality business segments.
Revenue increased 47.82% to RM42.25 million from RM28.58 million in the same quarter last year, driven from the recognition of the sale of its latest development, BeCentral residences and sale of completed residential units, i-Suite and Hyde projects in i-City, higher occupancy rate achieved for corporate office tower, Mercu Maybank and the opening of DoubleTree by Hilton Hotel in Q3’22.
For the full year, the group’s net profit rose to RM26.87 million from RM369,000. Its revenue increased 49.12% to RM119.62 million compared with RM80.21 million during the same period.
Meanwhile, chairman Tan Sri Lim Kim Hong opined that China’s reopening will have a positive impact on the local economy. However, the group is mindful of the uneven recovery of the global economy amid interest rate hikes, which he said ”may necessitate caution in our business planning and strategies.”
He added that the group will remain cautious against economic headwinds while strategically investing in creating value for both property development and property investment as well as the leisure segment to stay relevant to property investors.
“Higher sales despite economic uncertainties shows that people are still investing in properties. However, with more options available to them, they are choosing to invest in properties which they perceive to have better value propositions like i-City,” said Lim in a statement yesterday.
Lim said that with property development segment being a key contributor to the group’s earnings, the group will continue its effort in creating better value for its property investors – with the latest being the 5-Star status granted by the Ministry of Tourism, Arts and Culture Malaysia to DoubleTree by Hilton @i-City Finance Avenue in January 2023.
Meanwhile, he said that the ongoing work at the two towers of BeCentral residences as well as the Twenty 8 and 8Premier corporate & retail space, Mercu Maybank (Grade A, Green Building Index) and the Central i-City Mall nearby, are also expected to contribute to growth.
The occupancy rate at Mercu Maybank, with Malayan Banking Bhd as the anchor tenant, has gone up to 85%, while the certified Tier-3 data center which achieved a 100% occupancy rate years ago, has secured an upward revision in rental rates.
Central i-City Mall, which is a joint-venture between i-City and Thailand’s largest retail developer, Central Pattana, is 90% tenanted with an anticipated 12 million visitors per year
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In the leisure segment, the immersive Aurora Dancing Lights experience at SnoWalk, one of the attractions at the leisure theme park, has enhanced the growth of the leisure segment. With this positive contribution, the group is planning to add other new attractions to the leisure segment.
Moving ahead, the deployment of 5G technology will enable i-City to offer faster internet speeds and seamless connectivity to its tenants and visitors, while creating an environment that is conducive to its businesses.
“We are confident that the deployment of 5G technology will provide a significant competitive edge to i-City and further cement our position as a leader in the property investment and real estate development industry,’’ said Lim.
With significant plans and developments ahead, I-Berhad is moving forward to cautiously tap opportunities in the property and corporate as well as retail, leisure and hospitality sectors.