KUALA LUMPUR (25 Jan): IGB Real Estate Investment Trust’s (IGB REIT) net property income in the fourth quarter ended Dec 31, 2016 (4QFY2016) rose 13% to RM91.48 million from RM81.23 million a year ago, on higher rental income and lower utilities and property upgrade expenses.

For its second half ended Dec 31, 2016 (2HFY2016), the trust declared an income distribution of RM150.3 million or 4.3 sen per unit, payable on Feb 28, versus 3.72 sen in the same period last year.

Its quarterly distributable income amounted to RM79.66 million, compared with RM61.22 million a year ago.

Net profit was up 32% to RM70.29 million from RM53.13 million previously, while revenue rose 3% to RM125.654 million from RM121.433.

Year-to-date, IGB REIT’s net property income grew 5.34% to RM361.11 million in FY2016 from RM342.79 million the year before.

Net profit was up 9% to RM277.84 million from RM254 million, while revenue rose 3.71% to RM507.34 million from RM489.19 million.

Distributable income for FY2016 amounted to 8.71 sen per unit, the trust said, compared with 8.19 sen per unit the previous year.

Looking ahead, the trust said it will further explore asset enhancement initiatives at its two properties, namely Mid Valley Megamall and The Gardens Mall in spite of “the increasing supply of retail shopping space, lower expected retail sales growth and intense competition”.

IGB REIT settled 1.13% or two sen lower at RM1.75 yesterday, for a market value of RM6.11 billion.

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