PETALING JAYA: IGB Real Estate Investment Trust
(IGB REIT) expects retail businesses to face increased operational costs due to the upcoming electricity tariff hike in the latter half of 2025.
This is in spite of the fact that 85% of Malaysian households will continue to receive government electricity subsidies, it said.
“The uncertainty over the geopolitical tariff wars will further increase operating expenses across the entire supply chain.
“Economic uncertainties and potential policy shifts, such as the rationalisation of fuel subsidies could further impact consumer spending and the sales performance of tenants in the shopping malls within IGB REIT’s portfolio,” it said in a filing with Bursa Malaysia.
IGB REIT recorded total revenue of RM171.4mil in its first quarter ended March 31, 2025 (1Q25), an increase of 5.4% compared to RM162.6mil in 1Q24. Similarly, net property income (NPI) grew by 7.1% to RM133.1mil in 1Q25, compared to RM124.2mil in 1Q24.
The increase in both the revenue and NPI were mainly due to higher rental income in 1Q25.
The manager has proposed a distribution per unit of 3.19 sen for 1Q25, higher by 0.23 sen or 7.8% compared to 1Q24.
Based on IGB REIT’s unit price of RM2.25 as of 31 March 2025, this translates into an annualised distribution yield of 5.75%.
