IGB REIT Q4 earnings rise 7.6% to RM158.1mil

KUALA LUMPUR: IGB REIT, which owns the Mid Valley Megamall and the Gardens Mall, saw its earnings rise 7.6% to RM158mil in the fourth quarter ending Dec 31, from RM146.9mil in the corresponding quarter a year earlier.

This put earnings per share at 4.63 sen, against 4.32 sen previously.

Revenue for the quarter came in RM114.3mil, up 11% from RM103mil previously. (The profit figure is higher than revenue figure because it includes unrealised gains from assets appreciation.)

IGB proposed a dividend 3.61 sen, amounting to RM123.9mil, and payable on Feb 28, 2014 to unit holders entitled to payment as at 4pm on Feb 18.

Year-to-date, IGB’s earnings rose 103.5% to RM311.9mil from RM153.3mil previously, as revenue totalled RM430.7mil – up 273.6% from the RM115.3mil before.

According to the management, the whopping increase was down mainly to the acquisition of investment properties by IGB REIT that was completed on Sept 20, 2012. Hence, the corresponding period-to-date only covered approximately 3.37 months while current period-to-date covered 12 months of financial results.

Moreover, a revaluation on Mid Valley Megamall and The Gardens Mall by Henry Butcher Malaysia put the market value of Mid Valley Megamall and The Gardens Mall as at Dec 31, 2013 at RM3.56bil and RM1.245bil respectively, from RM3.5bil and RM1.2bil.

IGB REIT said it expected 2014 to be a challenging year, and hence was cautiously optimistic that its financial performance for the year ending Dec, 31, 2014 would be satisfactory.