KUALA LUMPUR (July 23): Net property income of IGB Real Estate Investment Trust (IGB REIT) rose 8.6% to RM98.5 million in the second quarter ended June 30, 2019 (2QFY19), against RM90.7 milion a year ago, on higher rental income and lower property operating expenses. 

Revenue increased 5.5% year-on-year to nearly RM135 million from RM128 million before, on the back of a 5.7% rise in rental income to RM114.5 million. 

In a bourse filing, the REIT announced an income distribution of 95% of its distributable income of some RM80 million for 2QFY19, or a distribution per unit (DPU) of 2.26 sen (2.22 sen taxable and 0.04 sen non-taxable), to be paid on Aug 30, 2019. 

For the cumulative six-months (6MFY19), the reit’s NPI rose by 4.5% to RM202 million from RM193.24 million in 6MFY18. Distributable income for the period totalled RM173.84 million, the REIT having made a DPU of 2.4 sen for the first quarter. 

Looking ahead, IGB REIT said it would continue to push its asset enhancement initiatives and to raise on-ground promotional activities for shoppers and visitors, as Retail Group Malaysia has revised its sales growth forecast to 4.9% from 4.5%, after a better-than-expected first quarter performance and stronger expansion in the second quarter.  

“IGB REIT is committed to create long term value for stakeholders, and looks forward to bringing real-life retail experiences that excite the market,” it said.  

The counter closed unchanged at RM1.96 today, valuing the REIT at RM6.95 billion. Some 778,600 units were traded.