IGB REIT records better rental income in 4Q, pays 4.9 sen DPU

KUALA LUMPUR (Jan 23): IGB Real Estate Investment Trust's net property income (NPI) rose 4% to RM95.19 million in its fourth quarter ended Dec 31, 2017 (4QFY17), from RM91.48 million a year ago as rental income improved.

The group's revenue rose 7% year-on-year (y-o-y) to RM134.35 million from RM125.65 million, as gross rental income grew 8% to RM105.8 million from RM97.8 million, its Bursa Malaysia filing yesterday showed.

Distributable income grew 9% y-o-y to RM86.49 million or 2.46 sen per unit from RM79.66 million or 2.28 sen.  

It announced an income distribution of 95% of its distributable income for the second half ended Dec 31, 2017 (2HFY17), which amounted to RM172.1 million or a distribution per unit (DPU) of 4.9 sen, to be paid on Feb 28. In comparison, it paid out RM150.3 million or 4.3 sen per unit for the 2HFY16.

As for the full-year ended Dec 31, 2017 (FY17), IGB REIT’s NPI improved 3% y-o-y to RM373.56 million from RM361.11 million.

Cumulative revenue grew 4% from RM507.34 million to RM524.92 million,, while gross rental income grew 5% to RM413.15 million from RM395.04 million.

Full year distributable income was at RM342.8 million or 9.76 sen per unit, up 8% y-o-y from RM316.31 million or 9.05 sen per unit.

Going forward, IGB REIT said notwithstanding the weakening purchasing power and intense retail competition, the manager (IGB REIT Management Sdn Bhd) will continue to strengthen the REIT’s performance by improving customers' and shoppers' experience in both Mid Valley Megamall and The Gardens Mall.  

Its manager will proactively explore asset enhancement initiatives and ensure that the tenancy mix is able to meet the evolving demands and preferences of customers, shoppers and retailers, it added.

“These may translate into a better financial performance that would enable IGB REIT to maintain a stable flow of distributable income, and create long-term value for its unitholders,” it said.

Shares in IGB REIT traded 0.6% or one sen higher to close at RM1.61 yesterday, valuing the group at RM5.66 billion. — theedgemarkets.com

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