IGB-REIT remains cautious over 2024 outlook

IGB-REIT posted a revenue of RM158.5mil and net profit of RM89.7mil for the fourth quarter.

PETALING JAYA: IGB Real Estate Investment Trust (IGB-REIT) is maintaining a cautious outlook for its financial year 2024 despite shopping traffic returning to pre-pandemic levels.

The group stated in a filing with Bursa Malaysia that it is dedicated to creating long-term value for its stakeholders, with regular and consistent distributions to unit holders serving as its main goal.

IGB-REIT recorded total revenue of RM158.5mil, net profit of RM89.7mil, as well as a net property income (NPI) of RM115.2mil for its fourth quarter of financial year 2023 ended Dec 31, 2023.

The 6.6% and 9.1% hike quarter-on-quarter for its revenue and NPI, respectively, was attributable to higher rental income during the quarter.

Unlike the jump in revenue and NPI, IGB-REIT’s net profit dropped 37.7% compared with the RM143.9mil from the corresponding quarter in 2022, due to net fair value change of RM60mil for investment properties in the corresponding quarter in 2022.

Its distributable income for the quarter amounted to RM99.8mil, which comprised RM92.9mil in realised profit, as well as non-cash adjustments from net fair value changes of RM3.2mil and manager fees of RM6.5mil payable in units.

To date, IGB-REIT has seen a jump in its total revenue, NPI, and net profit, amounting to RM604.3mil, RM447.9mil, and RM517.6mil, respectively.

The REIT stated that increased rental income raised its revenue by 8.6% and NPI by 6.6%.

Meanwhile, changes in net fair value of RM158.6mil for investment properties during the current year to date, along with increased rental income, were the reasons for its increase of 30.7% in net profit.