IGB sees core performance partly offset 1Q drag on absence of disposal gain

• Revenue rose 19.91% to RM499.38 million from RM416.46 million, supported by stronger contributions across all business segments.

KUALA LUMPUR (May 27): IGB Bhd (KL:IGBB) reported a 51.94% decline in net profit to RM89.07 million for the first quarter ended March 31, 2025 (1QFY2025), compared to RM185.34 million in the same period last year.

The decrease was mainly due to the absence of a one-off RM108.7 million land sale contribution from a joint venture recognised in 1QFY2024. As a result, the group’s earnings per share fell to 6.71 sen from 13.76 sen in the previous year’s quarter, its bourse filing showed on Tuesday.

Stripping off the one-off gains, IGB's operating profit rose 24.5% to RM227.13 million from RM182.44 million.

Meanwhile, revenue rose 19.91% to RM499.38 million from RM416.46 million, supported by stronger contributions across all business segments.

IGB said growth was particularly notable in the retail segment under IGB Real Estate Investment Trust, driven by higher rental income, as well as in the property development segment, buoyed by sales from the Southpoint Residences project.

It did not declare any dividend for the quarter under review.

The group plans to focus on tenant engagement and phased asset enhancements in its commercial properties, as it sees potential headwinds from US tariff woes, inflationary pressures from fuel subsidy reforms, the expansion of the sales and services tax, and an anticipated rise in electricity tariffs.

It also plans to refurbish its St Giles Gardens Hotel and MiCasa All Suite Hotel, and boost customer loyalty with the recent launch of the CHM Club hotel programme.

Additionally, the group aims to expand its landbank and pursue strategic partnerships in property development.

Shares of IGB closed up three sen or 1.1% at RM2.75 on Tuesday, giving it a market capitalisation of RM3.61 billion.

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