KUALA LUMPUR: The manager of IGB Real Estate Investment Trust
(IGB REIT) said it is cautious on retail sales growth, which it expects to affect the performance of its tenants in shopping malls.
"The key challenge for the Malaysian retail industry is the rising cost of living.
"Inflationary pressures have affected consumer spending and higher operating costs and ringgit depreciation against major foreign currencies have impacted retail sales," it said in comments accompanying the REIT's results filing with Bursa Malaysia.
However, the REIT manager said it remains committed to creating long-term value for its stakeholders.
In the first quarter of its financial year ended March 31, 2024, IGB REIT posted a net profit of RM99.61mil, up from RM96.23mil in the same quarter in 2023.
The REIT's earnings per share rose to 2.76 sen from 2.68 sen previously.
Revenue during the quarter was RM162.56mil, up from RM154.62mil in 1QFY23.
According to IGB REIT, the net property income in the current quarter rose 4.8% to RM124.2mil from the corresponding quarter in 2023.
It said the higher total revenue, net property income and profit after tax were mainly due to the higher rental income during the quarter.
For the quarter, the manager approved a distribution of 97.5% of IGB REIT's quarterly distributable income amounting to RM106.8mil or 2.96 sen per unit, payable on May 27, 2024.
