IGB-REIT said the higher total revenue and net property income were mainly due to the lower rental support provided to tenants in the current quarter, arising from the economic reopening and improving retail sales of tenants.
KUALA LUMPUR: IGB Bhd
expects the group’s financial results for the financial year 2023 to be satisfactory.
In a filing with Bursa Malaysia, IGB said it remained cautious about the challenges for the growth of the retail sale in 2023, which would affect its tenants’ performance in the shopping malls and also the financial performance of the group’s property investment – retail division.
On its property investment - commercial division, IGB said the outlook of the office market in the near term remains volatile as there is an imbalance in the office supply-demand dynamics coupled with fierce competition.
“The group remains committed to improving the attributes of its property portfolio and driving engagements with tenants to create meaningful relationships that go beyond the brick-and-mortar elements to further drive occupancies growth and retain existing tenants,” it added.
Meanwhile, IGB expects a continued challenging year in 2023 for its property development division. The focus of the group remained on disposing of its current stock of completed properties while at the same time planning for future launches.
IGB said its hotel segment had shown remarkable recovery in 2022 supported by the increase in both domestic and international tourism.
The recovery of this division is expected to continue into 2023 with an added boost after China lifted its travel restriction on Jan 8.
In the fourth quarter ended Dec 31, IGB’s net profit tumbled 92% to RM18.8mil, or earnings per share of 2.08 sen against RM233.8mil, or 26.25 sen a year ago.
Revenue, however, rose 27.5% to RM383.2mil from RM300.4mil last year.
For the full year, IGB posted a net profit of RM159.1mil, or 17.63 sen on revenue of RM1.29bil.
