KUALA LUMPUR: Eco World Development Group Bhd reported an 18 per cent rise in its net profit to RM80.3 million for the first quarter of financial year 2025 (1QFY25), up from RM69.6 million in the same period last year.

Its revenue increased slightly 0.3 per cent to RM539.6 million from RM537.8 million, driven by higher contributions from active and newly-launched phases, which offset the lower contributions from phases nearing completion.

Eco World said in terms of recurring income, it plans to strategically expand its portfolio, which received a significant boost through an agreement with Pearl Computing.

The agreement involves building and leasing the shell and core of data centres and related structures on a 37.47 hectares site in Eco Business Park V.

"The agreement is for an initial lease term of 20 years with a renewal option of up to 10 additional years. The total value of rent payable by Pearl Computing over the initial lease term is estimated to be up to RM4.8 billion.

"This will provide the group with substantial fixed rental revenue to anchor its recurring income aspirations," it said in a Bursa Malaysia filing.

Over the next three to five years, the group plans to expand its asset portfolio, with the goal of generating 20-30 per cent of future earnings from recurring income sources.

The property developer said this strategy aims to strengthen earnings stability and ensure more predictable cash flow moving forward.