IGB Commercial REIT posts net property income of RM30.43 million in 1QFY22

KUALA LUMPUR (April 28): IGB Commercial REIT said it posted net property income of RM30.43 million for 1QFY22 on the back of revenue of RM47.17 million.

The REIT did not declare any DPU for the latest quarter.

No comparative figures are available for IGB Commercial REIT as it has only been a public-listed property trust since Sept 20 last year.

Following the positive trajectories of better market stability and renewed signs of interest, IGB Commercial REIT said it will continue to position itself as the preferred partner for real estate solutions, focusing on building strong relationships with tenants, and maintaining expenses at reasonable levels.

“Looking forward, IGB Commercial REIT strives to deliver sustained performance for all stakeholders,” it said.

With the gradual improvement in business sentiment and trade, the REIT said demand for office spaces will rise and stabilise occupancy and rental rates.

The REIT’s assets are mainly office blocks, including Menara IGB, IGB Annexe, Centrepoint South, Centrepoint North, Boulevard Properties, the Gardens South Tower, Gardens North Tower and Southpoint Properties at Mid Valley City.

“Under the relaxed Covid-19 rules and standard operating procedures (SOPs) from April 1, 2022, limitation on the number of people allowed in the workplace has been abolished.

“The return to 'in person' work will likely increase in the coming months. Hence, IGB Commercial REIT has prioritised maintaining the physical conditions of its property portfolio,” it said.

It is projected that rental assistance for qualifying tenants will be low, but rental reversions are expected to be flat, it added.

As a result, it said office occupancies of the portfolio have remained relatively stable. As at March 31, the average occupancy rate of IGB Commercial REIT's 10 buildings was 70.6% (Dec 31, 2021: 71.6%).

IGB Commercial REIT dropped 0.5 sen to 61 sen on Wednesday, valuing the group at RM1.42 billion. Year to date, the counter has dropped 3.17%.

Edited by Kathy Fong

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