IGB REIT’s net property income jumps 51%, commercial REIT rises 18%

KUALA LUMPUR (July 22): IGB REIT’s (KL:IGBREIT) net property income (NPI) jumped 51% for the second quarter ended June 30, 2026 (2QFY2026), helped by a full-quarter contribution from The Mall, Mid Valley Southkey (MVS Mall).

IGB REIT reported NPI of RM181.2 million from RM119.9 million a year earlier, according to its Bursa Malaysia filing on Wednesday, driven by additional income from MVS Mall and higher rental income from Mid Valley Megamall (MVM) and The Gardens Mall (TGM). Revenue rose 50.5% to RM241 million from RM160.1 million

Separately, IGB Commercial REIT’s (KL:IGBCR) NPI grew 18.5% to RM45.1 million from RM38.1 million in the corresponding quarter, supported by higher occupancy, improved average rental rates and lower finance costs. Revenue rose 10.3% to RM71.23 million from RM64.59 million.

IGB REIT declared a distribution of 97.5% of its quarterly distributable income, amounting to RM149 million or 3.44 sen per unit. Meanwhile, IGB Commercial REIT declared a distribution equivalent to 95% of its quarterly distributable income, amounting to RM32.8 million or 1.35 sen per unit.

On its prospects, IGB REIT said Malaysia's retail sector is expected to remain resilient despite consumers becoming more selective amid rising living costs and global economic uncertainty. It said it expects the first full financial year contribution from MVS Mall, alongside ongoing asset enhancement initiatives, to further support the portfolio.

IGB Commercial REIT said demand for office space is expected to remain concentrated in well-located, high-quality buildings, supported by steady domestic economic activity despite external uncertainties. The REIT added that it will continue focusing on proactive leasing, cost management, asset enhancement initiatives and sustainability investments to strengthen the portfolio's long-term performance.

At market close on Wednesday, shares of IGB REIT were down by one sen or 0.4% to RM2.71, giving the group a market capitalisation of RM11.7 billion. Meanwhile, IGB Commercial REIT’s counter closed flat at 60.5 sen, valuing it at RM1.47 billion.

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