Friday 29 Mar 2024
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KUALA LUMPUR (Jan 23): IGB Real Estate Investment Trust’s (REIT) net profit for the fourth quarter ended Dec 31, 2018 slipped 9.9% to RM105.51 million, from RM117.13 million a year earlier, due to a lower revaluation surplus on investment properties.

The group declared a distribution per unit (DPU) of 2.28 sen for the quarter, payable on Feb 28. This brings total payout for the financial year to 9.19%, compared with 9.28% in the previous year.

Fourth quarter gross revenue, comprising gross rental income and other income, grew 2.1% to RM137.21 million, from RM134.35million previously, thanks to higher rental income.

For the full financial year, IGB REIT saw a 2.8% decline in net profit to RM333.75 million, from RM343.37 million a year earlier, on a lower revaluation surplus on investment properties, as well as a one-time write back of step-up interest in the previous year.

Full-year revenue rose 2.05% to RM535.69 million, from RM524.92 million in the previous year, thanks to higher rental income and lower property operating expenses during the period.

In a filing with Bursa Malaysia, IGB REIT said the short term outlook for the retail space remains one of cautious optimism.

Notwithstanding these developments, the REIT’s manager IGB REIT Management Sdn Bhd will endeavour to strengthen the REIT’s performance by improving customers and shoppers experience at both Mid Valley Megamall and The Gardens Mall.

IGB REIT’s share price closed up 4 sen (2.3%) today to RM1.78, for a market capitalisation of RM6.2 billion.

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