Malaysia’s Largest Mall Anchors IOIREIT IPO; TA Securities’ No.2 Analyst Flags 12.5% Upside
StockTipRatings ·
TA Securities analyst Thiam Chiann Wen assigned IOIPG Malaysia REIT a fair value of RM1.08 in her “Not Rated” IPO report, implying 12.5% upside from its RM0.96 IPO price. She favours its flagship IOI City Mall, income visibility from hotel master leases and potential acquisition pipeline. The projected FY27 annualised distribution of 6.33 sen per unit implies a 6.6% yield at the offering price.
Thiam Chiann Wen ranks No.2 among 13 TA Securities analysts and No.2 among 14 property-sector analysts tracked on StockTipRatings, based on data since 2023. She holds an 88% expert rating, with a 24% average return and a 71% success rate over the one-year period following her calls.
The initial portfolio comprises nine assets valued at approximately RM7.7 billion, anchored by IOI City Mall, Malaysia’s largest shopping mall, alongside six Marriott-branded hotels and two office properties. The mall accounts for approximately 75% of FY25 net property income, making rental growth and occupancy central to earnings. Meanwhile, the hotels’ ten-year master leases provide a guaranteed rental floor while retaining upside from stronger operating performance.
Thiam forecasts distributions per unit to grow approximately 4% annually in FY28–FY29, supported by 5%–6% rental reversions at IOI City Mall and improving office occupancy. Potential acquisitions from sponsor IOI Properties Group’s pipeline provide additional opportunities but are excluded from her forecasts. The offering involves existing units, so the REIT will receive no IPO proceeds.
Applications close on November 10, ahead of its scheduled Main Market listing on November 25.
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