IGB REIT says retail centres to bear the brunt of MCO 2.0

KUALA LUMPUR: Mall operator IGB Real Estate Investment Trust (IGB) said its earnings slipped in the fourth quarter and warned that the outlook for 2021 has worsened with the re-introduction of the movement control order (MCO).

It posted a net profit of RM72mil in the three months ended Dec 31, IGB REIT said in a filing with Bursa Malaysia today.

Full year net profit was down by a quarter to RM236.8mil from RM315.8mil a year ago.

"The impact of MCO 2.0, including lower shoppers’ footfall, lesser car traffic volume and higher temporary closure of retail shops, will adversely affect the financial performance of retail centres, especially shopping malls," it said.

"Retail sales in 1Q’21, despite the Chinese New Year festivities being the peak season for shopping, are not expected to perform well," it added.

Despite the challenges, IGT REIT said it is "determined to stay resilient" throughout the Covid-19 pandemic.

IGB REIT is owner of Mid Valley Megamall and The Garden Mall in Kuala Lumpur.

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IGB REIT , Mid Valley Megamall


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