KUALA LUMPUR (July 26): IGB Real Estate Investment Trust’s (REIT) net property income (NPI) for the second quarter ended June 30, 2023 (2QFY2023) fell 2.76% to RM102.79 million, from RM105.72 million a year ago, due to higher utility expenses and higher reversal for impairment of trade receivables in the same period last year.

Net profit dropped 3% to RM80.97 million from RM83.47 million, said the REIT whose portfolio includes the Mid Valley Megamall and The Gardens Mall.

Revenue increased 5.82% to RM141.54 million from RM133.76 million on the back of higher rental income in the current quarter.

Distributable income dipped 2.85% to RM87.25 million from RM89.81 million in 2QFY2022, said IGB REIT in a bourse filing.

The REIT declared an income distribution per unit (DPU) of 2.37 sen, payable on Aug 29.

For the six months ended June 30, IGB REIT’s NPI rose 3.71% to RM221.35 million from RM213.42 million a year ago, while six-month revenue jumped 10.68% to RM296.16 million from RM267.57 million.

Commenting on its prospects, IGB REIT said it will remain cautious on the challenges for growth of retail sales in 2023, which would affect tenants’ performance at shopping malls and also the REIT’s financial performance.

“Nonetheless, IGB REIT remains committed to bringing about long-term value to its stakeholders,” it said.

In a separate filing, IGB REIT announced the resignation of its independent and non-executive director Datuk Darawati Hussain, who had just been appointed to the board on July 10.

This, it said, was to comply with paragraph 3.05 of the Securities Commission Malaysia's Guidelines on Listed Real Estate Investment Trusts, which states that a director of a management company must not hold office as a director of more than one management company at any one time, or hold office as a member of the investment committee of a REIT operated by another management company.

IGB REIT units closed two sen or 1.2% lower at RM1.65 on Wednesday (July 26), giving the REIT a market capitalisation of RM5.93 billion.

Read also:
IGB Commercial REIT reports marginal increase in 2Q property income, plans 1.74 sen distribution per unit