IGB REIT records better rental income in 1Q, announces DPU of 2.48 sen

KUALA LUMPUR (April 24): IGB Real Estate Investment Trust’s net property income (NPI) rose 6.7% to RM102.5 million in its first quarter ended March 31, 2018 (1QFY18) from RM96.1 million a year ago due to higher rental income and lower operating expenses.

The group’s revenue rose 2.3% year-on-year (y-o-y) to RM136.80 million from RM133.70 million, as rental income grew 2.64% to RM109.31 million from RM 106.5 million, according to its Bursa Malaysia filling yesterday.

Distributable income grew 8.24% y-o-y to RM91.9 million or 2.61 sen per unit from RM84.9 million or 2.42sen.

It announced an income distribution of 95% of its distributable income for 1QFY18, which amounted to RM87.3 million or 2.48 sen per unit, to be paid on May 31, 2018.

In addition, its manager IGB REIT Management Sdn Bhd has changed the frequency of distribution, from half-yearly to quarterly and said it would distribute at least 90% of its distributable income for the financial year ending Dec 31, 2018.

Going forward, IGB REIT said notwithstanding the weakening purchasing power, 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 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.

Its counter closed unchanged at RM1.52 yesterday, giving it a market capitalisation of RM5.35 billion. — theedgemarkets.com

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