IGB’s 3Q net profit down 2.69%

KUALA LUMPUR (Nov 22): IGB Bhd's net profit fell 2.69% to RM66.46 million for the third quarter ended Sept 30, 2019, from RM68.29 million a year ago, due to lower contribution from the property investment for commercial property division and hotel division.

Earnings per share fell to 9.77 sen from 10.3 sen previously, IGB said in a stock exchange filing yesterday.

Revenue for the period climbed 3.15% to RM364.36 million from RM353.22 million a year earlier.

The group's retail property investment division saw IGB REIT, the owner of Mid Valley Megamall and The Gardens mall, record higher gross revenue and net property income during the quarter.

It reported gross revenue of RM136.3 million versus RM133.7 million a year ago, while net property income was RM100.7 million, higher than RM96.6 million a year ago.

Meanwhile, the property investment in the commercial building division recorded over 80% in average rental rates, which is comparable to the previous year's figure.

The group's property development division, however, recorded lower revenue of RM30.8 million, down by 52% from RM64 million as its only development project currently under construction, Stonor, a 400- unit condominium located in the vicinity of KLCC, is nearing completion.

Meanwhile, the hotel division’s revenue decreased by 10% to RM70.6 million from RM78.6 million last year, on lower average occupancy rates and lower average room rates by a majority of the hotels in the group.

IGB said that for the first nine months, the group saw a 3.57% increase in net profit to RM148.76 million from RM143.64 million. Revenue rose 7.89% to RM1.02 billion from RM940.91 million a year ago.

IGB’s share price closed unchanged at RM2.70 yesterday, bringing the group a market capitalisation of RM1.84 billion.

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