IGB REIT remains cautious on local retail sector


PETALING JAYA: IGB Real Estate Investment Trust (IGB REIT) is remaining cautious on the outlook of the Malaysian retail sector, with growth anticipated to be shaped by a shift toward essential and value-driven spending.

“While the broader economy is projected to expand on the back of domestic resilience, consumer sentiment is likely to remain measured, with a greater focus on affordability and necessity-based consumption,” it said in a statement.

For the first quarter ended March 31, 2026, IGB REIT’s net property income (NPI) rose to RM207mil, an increase of 55.5% compared with the preceding year’s quarter of RM133.1mil.

It recorded a total revenue of RM261.3mil, an increase of 52.4% against the preceding year quarter of RM171.4mil.

“The increase in both revenue and NPI was mainly due to the contribution from The Mall, Mid Valley Southkey, acquired in November 2025, as well as higher rental income from Mid Valley Megamall and The Gardens Mall.”

The manager also approved a distribution of 97.5% of IGB REIT’s quarterly distributable income amounting to RM173mil or 4 sen per unit.

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