IOI Properties Group Berhad (IOIPG) recently acquired Tropicana Gardens Mall for RM680 million, a seven-storey retail podium in Petaling Jaya, with an occupancy rate of approximately 77%. The acquisition is part of IOIPG's strategy to expand its investment properties portfolio, which also includes recent purchases of W Kuala Lumpur hotel, Courtyard by Marriott Penang, and land in Langkawi for future development, according to MIDF Amanah Investment Bank (MIDF).

MIDF maintains a NEUTRAL rating on IOIPG with a revised target price of RM2.25, down from RM2.40 previously. The bank highlights that while the acquisitions contribute to portfolio expansion, they also lead to higher net gearing, expected to rise to 0.78x from 0.74x as of 3QFY24, which impacts the company's valuation.

IOIPG's earnings forecast remains unchanged as the near-term impact of the acquisitions is seen as limited. The company's expanding investment portfolio and increased net gearing present mixed signals, with limited short-term catalysts expected to drive significant growth.