KUALA LUMPUR (Jan 27): IGB Real Estate Investment Trust (REIT) recorded a total distribution per unit of (DPU) of 7.79 sen for the financial year ended Dec 31, 2014, an increase of 10.7% from 7.04 sen in FY13.

The total DPU in FY14 represented a yield of 5.37%, based on the unit’s closing price of RM1.31 today.

In a filing to Bursa Malaysia this evening, IGB REIT (fundamental: 2.8; valuation: 0.5) has announced a final distribution of 3.9 sen, compared to 3.61 sen previously. The payment will be made on Feb 27, 2015. The interim distribution of 3.89 sen had been paid on Aug 29, 2014.

In FY14, total distributable income had increased by 11.5% to RM268.8 million; while gross revenue rose to RM461.77 million, from RM430.73 million, due to higher rental achieved.

On prospects, IGB REIT expects 2015 to be a challenging year, hence it is “cautiously optimistic” its financial performance for the year ending Dec 31, 2015, would be “satisfactory”.

IGB REIT closed down 1 sen or 0.8% to RM1.31, giving it a market capitalisation of RM4.52 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)