KUALA LUMPUR: IGB Real Estate Investment Trust (IGB REIT), the owner of Mid Valley Megamall, said profits fell in the third quarter ended Sept 30 on lower rental income and weaker contribution from its car park business.
It expects another challenging quarter ahead, as the government extended the conditional movement control order (MCO) in Kuala Lumpur, Selangor and Putrajaya for another two weeks until Nov 9.
"The current sluggish economic and business conditions are expected to result in a material adverse impact on the financial performance for the financial year ending 31 December 2020," IGB REIT said in a filing with Bursa Malaysia today.
For the quarter just ended, IGB REIT’s gross revenue declined 4.1% to RM130.7mil, Net property income fell 2.8% to RM97.8mil compared with , decreased 2.8% compared with RM100.7mil made a year ago.
Profit after taxation dropped 3.7% to RM76.8mil.
"The distributable income for the current quarter amounted to RM83.3mil, consisting of realised profit of RM76.8mil and the non-cash adjustments arising mainly from Manager fee payable in Units of RM5.7mil," it said.