Stock With Momentum: IGB Real Estate Investment Trust

This article first appeared in The Edge Financial Daily, on January 25, 2019.
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IGB Real Estate Investment Trust (-ve)
Trading of units in IGB Real Estate Investment Trust (IGB REIT) (fundamental: 2.2/3, valuation: 1.65/3) triggered our proprietary momentum algorithm yesterday for the first time in three years since January 2016.

A turnover of 13.54 million units were recorded — nearly nine times its 200-day average trading volume of 1.53 million units — before the counter finished two sen or 1.12% higher at RM1.80.

On Wednesday, IGB REIT said net profit for its 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. It declared a distribution per unit of 2.28 sen for the quarter.

Fourth quarter gross revenue, comprising gross rental income and other income, grew by 2.1% to RM137.21 million from RM134.35 million previously, thanks to higher rental income. IGB REIT remains cautiously optimistic of its short-term outlook for the retail space.