IGB REIT’s 1Q distributable income up 19%

PETALING JAYA (April 29): IGB Real Estate Investment Trust (IGB REIT), which lists Mid Valley Megamall and The Gardens Mall in its portfolio, saw a 19.4% year-on-year increase in distributable income for the three months ended March (1QFY15) at RM79.6 million, due to higher total rental income and lower property costs, as reported in The Edge Financial Daily today.

Last year, it recorded RM66.67 million.

Citing a Bursa Malaysia filing by IGB REIT, The Edge Financial Daily quoted that the distributable income per unit for 1QFY15 was 2.29 sen compared with 1.89 sen in the immediate preceding quarter.

However, no distribution was declared for 1QFY15 as the REIT’s manager intends to distribute 100% of distributable income on a half-yearly basis for the six-month period ending June 30, 2015 and Dec 31, 2015.

IGB REIT said its net property income for 1QFY15 was RM90.05 million, up 16.21% from RM77.48 million a year ago. Gross revenue for 1QFY15 was RM125.4 million, up 9.9% against 1QFY14’s RM114.1 million, which it said was mainly due to higher total rental income in the current quarter.

On prospects, the company remains optimistic, given the current satisfactory performance of existing business portfolio. The operational result for FY15 is expected to be satisfactory, the report said.