IGB Commercial REIT portfolio value edges up to RM3.25 bil on valuation gains

PETALING JAYA (July 8): IGB Commercial Real Estate Investment Trust (IGBCR) has reported a marginal increase in the fair value of its investment properties following a valuation exercise as at June 30, 2026, with its portfolio value rising to RM3.253 billion from RM3.247 billion as at Dec 31, 2025.

It said in a Bursa Malaysia filing yesterday (July 7) that the valuation exercise, undertaken by independent valuer Knight Frank Malaysia Sdn Bhd, had resulted in a gross fair value increase of RM6 million across IGBCR’s investment properties during the six-month period ended June 30, 2026.

After taking into account capitalised asset enhancement initiatives and deferred lease incentives, the net fair value change for the period stood at RM841,000. IGBCR’s unaudited net asset value (NAV) per unit for the quarter ended June 30 was RM0.9603.

Knight Frank conducts valuation

IGB REIT Management Sdn Bhd, the manager of IGBCR, said an investment property valuation was conducted as at June 30 by Knight Frank Malaysia Sdn Bhd.

Knight Frank Malaysia is an independent professional valuer registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia.

The valuation covered IGBCR’s portfolio of commercial assets comprising properties located in Mid Valley City and Kuala Lumpur.

The assets in Mid Valley City comprise Menara IGB & IGB Annexe, Centrepoint South, Centrepoint North, Boulevard Offices & Retail, The Gardens South Tower, The Gardens North Tower, and Southpoint Offices & Retail.

The Kuala Lumpur assets comprise Menara Tan & Tan, GTower and Hampshire Place Office.

Three Mid Valley assets gain

The updated valuation showed that most of IGBCR’s investment properties recorded unchanged market values compared with the previous valuation as at Dec 31, 2025.

Three assets recorded increases during the six-month period.

Centrepoint North’s market value increased by RM1 million to RM197 million from RM196 million, while The Gardens North Tower recorded a RM4 million increase to RM392 million from RM388 million.

Southpoint Offices & Retail saw its market value rise by RM1 million to RM640 million from RM639 million.

The remaining properties maintained their previous valuations, including Menara IGB & IGB Annexe at RM190 million, Centrepoint South at RM194 million, Boulevard Offices & Retail at RM81 million, The Gardens South Tower at RM400 million, Menara Tan & Tan at RM255 million, GTower at RM726 million and Hampshire Place Office at RM178 million.

Overall, the portfolio’s market value increased by RM6 million to RM3.253 billion.

Net fair value impact

IGBCR said the RM6 million gross fair value change was adjusted for capitalised asset enhancement initiatives amounting to RM5.769 million and deferred lease incentives of RM610,000.

The deferred lease incentives relate to the effect of lease straight-lining in accordance with Malaysian Financial Reporting Standard 16.

Following these adjustments, the net fair value change for the period from January 1 to June 30 amounted to RM841,000.

Based on the unaudited interim results for the quarter ended June 30, IGBCR’s NAV per unit stood at RM0.9603.

The valuation reports are available for inspection for three months from July 7 during regular business hours at the registered office of IGB REIT Management Sdn Bhd at Level 32, The Gardens South Tower, Mid Valley City, Lingkaran Syed Putra, Kuala Lumpur.

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