IGB REITs report higher 1Q earnings as mall assets outshine offices; both declare distributions

PETALING JAYA (April 30): The retail and office arms of the IGB group both reported stronger first-quarter results, though the scale of their performances diverged sharply — with IGB Real Estate Investment Trust's (IGB REIT) malls posting blockbuster growth on the back of a new acquisition, while IGB Commercial Real Estate Investment Trust (IGB Commercial REIT) delivered a steady, organic improvement across its office portfolio, according to its Bursa Malaysia announcements.

IGB REIT: Malls fire on all cylinders

IGB REIT's total revenue surged 52.4% to RM261.3 million for the quarter ended March 31, this year, from RM171.4 million a year earlier, while net property income (NPI) jumped 55.5% to RM207.0 million from RM133.1 million. 

Profit after taxation rose 52.8% to RM162.8 million, with basic earnings per unit at 3.76 sen.

The leap was largely driven by the maiden full-quarter contribution from The Mall, Mid Valley Southkey (MVS Mall) in Johor Bahru, acquired in November 2025, which contributed RM80.6 million in revenue and RM65.6 million in NPI. 

Stripping out MVS Mall, the two existing assets also performed strongly — Mid Valley Megamall (MVM) grew revenue 3.7% to RM123.9 million and The Gardens Mall (TGM) grew 9.4% to RM56.8 million.

IGB Commercial REIT: Office portfolio holds firm

IGB Commercial REIT posted more modest but equally solid growth, with revenue rising 10.5% to RM68.9 million from RM62.3 million, and NPI climbing 14.3% to RM44.4 million from RM38.9 million. 

Profit after taxation grew 20.1% to RM28.8 million, with basic earnings per unit at 1.19 sen — all on an organic basis with no new acquisitions in the quarter.

The improvement was driven by higher occupancy and average rental rates across its 10-building portfolio, alongside lower finance costs. 

Overall portfolio occupancy strengthened to 92.9% as at March 31, this year, from 89.2% a year ago — with Mid Valley City properties at 96.6% occupancy and Kuala Lumpur properties at 86.7%. 

Average rental rates also edged up to RM6.64 psf from RM6.42 a year earlier.

How the two compare

Taken together, the two REITs present a compelling retail-versus-office snapshot within the same group:

(1) IGB REIT manages three retail malls with total revenue of RM261.3 million (+52.4%), NPI of RM207.0 million (+55.5%) and profit after tax of RM162.8 million (+52.8%)
(2) IGB Commercial REIT manages 10 office buildings with total revenue of RM68.9 million (+10.5%), NPI of RM44.4 million (+14.3%) and profit after tax of RM28.8 million (+20.1%)
(3) Earnings per unit came in at 3.76 sen for IGB REIT and 1.19 sen for IGB Commercial REIT
(4) Portfolio occupancy for IGB Commercial REIT stood at 92.9%; IGB REIT does not report a blended occupancy figure given its mall format
(5) Both declared distributions at high payout ratios — 97.5% for IGB REIT and 95% for IGB Commercial REIT

Outlook: Cautious optimism on both fronts

IGB REIT's manager sounded a measured note on 2026, flagging geopolitical uncertainties, rising operating costs and potential subsidy rationalisation as risks that could weigh on consumer discretionary spending. 

It pointed to the Visit Malaysia 2026 campaign, which targets 47 million foreign tourist arrivals, as a key growth catalyst to support footfall at its three prime malls.

IGB Commercial REIT struck a similarly cautious but confident tone. 

In a "flight-to-quality" environment, the manager noted that its fully green-certified portfolio and tenant-first approach give it a competitive edge, as businesses increasingly favour well-located, high-performing assets. Inflationary pressures — particularly energy costs — remain a key watchpoint for operating expenses.

Distributions

Both REITs share the same ex-date and payment schedule. IGB REIT declared a first interim distribution of 4 sen per unit (3.96 sen taxable, 0.04 sen non-taxable), representing 97.5% of distributable income of RM173.0 million. 

IGB Commercial REIT declared 1.33 sen per unit (1.32 sen taxable, 0.01 sen non-taxable), representing 95% of distributable income of RM32.2 million. 

Both distributions are payable on May 29,, with book closure on May 14.

Source: Bursa Malaysia announcements by IGB Real Estate Investment Trust and IGB Commercial Real Estate Investment Trust dated April 29, 2026.

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