IGB REIT's 1Q net property income up 2.6% on higher rental revenue

KUALA LUMPUR (April 25): IGB Real Estate Investment Trust’s (REIT) posted a 2.6% increase in net property income for the first quarter ended March 31, 2017 (1QFY17) at RM96.06 million, from RM93.62 million a year earlier, on higher rental income.
 
In a filling to Bursa Malaysia today, it said its quarterly distributable income was also up 2.69% to RM84.88 million, against RM82.66 million last year (1QFY16).
 
The company said distributable income for the current quarter consists of realised profit of RM75.4 million and the non-cash adjustment arising mainly from Manager fee payable in units of RM8.6 million.
 
Its net profit was up 3.54% to RM75.39 million, compared with RM72.82 million a year ago, while its revenue was 1.86% higher at RM133.66 million in 1QFY17, from RM131.21 million.
 
Going forward, IGB REIT said notwithstanding the increasing supply of retail shopping space, lower expected retail sales growth and intense competition, the Manager would continue to strengthen IGB REIT’s performance by proactively exploring asset enhancement initiatives at both the Mid Valley Megamall and The Gardens Mall, in order to maintain a stable flow of distributable income and to create long-term value for its unitholders.
 
Shares in IGB REIT were up one sen or 0.6% to RM1.69 today, for a market capitalisation of RM5.91 billion. — theedgemarkets.com

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