IGB Bhd sinks into 1Q net loss on MCO

KUALA LUMPUR (May 29): IGB Bhd sank into a first quarter net loss of RM7.96 million against a net profit of RM17.68 million a year earlier, as the property development and investment company’s revenue fell due to the adverse effect of Malaysia’s Covid-19-driven movement control order (MCO) to curb the spread of the pandemic.

In a filing with Bursa Malaysia yesterday, IGB REIT said revenue decreased to RM234.62 million in the first quarter ended March 31, 2021 (1QFY21) from RM291.42 million a year earlier, due to lower contribution from among others, the group’s commercial and retail property investment segments and hotel operations.

“The (group’s) results were adversely affected by the current MCO, whereas during the corresponding period last year, the MCO started from 18 March 2020,” IGB Bhd said.

IGB Bhd is the controlling shareholder in IGB Real Estate Investment Trust (IGB REIT) where IGB Bhd owns a combined direct and indirect stake of 53.26%, according to IGB REIT’s annual report.

According to IGB Bhd’s website, IGB REIT owns the Mid Valley Megamall and The Gardens Mall along Lingkaran Syed Putra here.

In IGB Bhd’s Bursa filing today, the company said that in quarterly terms, 1QFY21 group revenue decreased 15% from RM276.7 million in the preceding quarter (4QFY20) due to lower contribution from the company’s commercial and retail property investment segments and hotel operations.

"With the global outbreak of the Covid-19 pandemic beginning from late 2019 and early 2020 and the imposition by the Malaysian Government of the MCO from 18 March 2020, the outlook for the local economy remains uncertain and challenging in the near term. 

"With the high number of positive Covid-19 cases in recent weeks which will result in continued negative impact on economic activity, the group will not be spared from the negative impact of the pandemic. The board expects that the group’s results for the current financial year ending 31 December 2021 will be affected,” IGB Bhd said. 

IGB Bhd said the group has taken steps and will continue to take necessary actions to mitigate the impact of the Covid-19 pandemic by reducing operating expenses, as well as assessing the various government assistance measures which may be applicable to the group.

At 5pm today, IGB Bhd’s share price closed down three sen or 1.07% at RM2.78 yesterday, which values the company at about RM2.45 billion.

IGB Bhd has 881.52 million issued shares, according to its quarterly financial report.

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