The better performance was attributed to the higher rental income in the current quarter.
KUALA LUMPUR: IGB Real Estate Investment Trust
(IGB-REIT) booked a higher year-on-year (y-o-y) net profit for its first quarter (1Q) ended March 31, 2024, even as it cautioned that inflationary pressures would keep it under pressure.
Its total comprehensive income or net profit for the quarter rose by 11.1% y-o-y to RM99.61mil on the back of revenue rising by 2.6% to RM162.56mil.
Basic earnings per share stood at 2.76 sen compared with 2.68 sen previously.
The better performance was attributed to the higher rental income in the current quarter, according to its financial statements.
The manager had approved a distribution of 97.5% of IGB-REIT’s quarterly distributable income, amounting to RM106.8mil or 2.96 sen per unit, which will be paid out on May 27.
“The distributable income for the current quarter amounted to RM109.4mil, consisting of realised profit of RM102.3mil, the non-cash adjustments arising mainly from net fair value change of RM2.7mil and the manager’s management fee payable in units of RM6.7mil,” it said.
It also noted that a total of 3.76 million new units were issued by IGB-REIT as payment for 65% of the manager’s fee in the current year-to-date.
On its outlook for the near future, IGB-REIT said it remains cautious on retail sales growth, which would affect tenants’ performance at shopping malls and also its financial performance.
“Nonetheless, IGB-REIT remains committed to bringing about long-term value to its stakeholders,” the REIT manager said.
“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 the ringgit depreciation against major foreign currencies have impacted retail sales.”
Based on a report from Retail Group Malaysia, the Malaysian retail industry is estimated to grow by 3.5% in the second quarter due mainly to the Aidil Fitri festive holidays.
