KUALA LUMPUR: IGB Real Estate Investment Trust (REIT) expects the current sluggish economic and business conditions to result in a material adverse impact on its financial performance this year.
“Despite the grim outlook and many challenges ahead, IGB REIT is determined to stay resilient throughout the Covid-19 pandemic, ” it said.
IGB REIT, the owner of the Mid Valley Megamall and The Gardens Mall, posted steep declines in revenue and earnings in the second quarter ended June 30.
Gross revenue fell 54% to RM61.98mil compared with RM134.98mil a year ago.
Net property income tumbled 62% to RM37.36mil, while profit after tax plunged 75% to RM19.5mil.
“The lower gross revenue, net property income and profit after tax were mainly due to the rental support provided to tenants and lower car park income arising from the Covid-19 pandemic and resultant movement control order, ” it said.
For the second quarter ended June 30, the manager of IGB REIT had approved a distribution of 92.5% of its quarterly distributable income amounting to RM22.3mil, or 0.62sen per unit, at 0.59 sen taxable and 0.03 sen non-taxable, payable on Aug 28,2020.