IGB REIT increases distributable income 11.7% year-on-year to RM75.45 million

Mid Valley Megamall, Kuala Lumpur

KUALA LUMPUR (July 29): IGB Real Estate Investment Trust (IGB REIT) increased its distributable income 11.7% year-on-year to RM75.45 million in the second quarter ended June 30, 2015 (2QFY15) from RM67.54 million.

IGB REIT said the distributable income, which translates to a distribution per unit (DPU) of 2.18 sen per unit, consists of realised profit of RM65.8 million and the non-cash adjustment arising mainly from manager fee payable in units of RM8.2 million.

This brings its half year (1HFY15) DPU to 4.47 sen per unit (1HFY14: 3.89 sen), which will be paid on Aug 28, and represents a 100% of its RM155.05 million distributable income for the half-year period, up 15.54% from 1HFY14’s RM134.2 million.

According to its filing with the local bourse, IGB REIT said its net property income for 2QFY15 was at RM86.3 million, up 9.7% compared with the previous corresponding quarter’s RM78.7 million, on higher total rental income and lower property costs in the current quarter.

Its gross revenue was RM121.4 million, up 5.1% against the corresponding quarter of RM115.5 million on higher total rental income in the current quarter.

Year-to-date gross revenue also climbed 7.5% to RM246.8 million from RM229.6 million due to higher total rental income; net property income for the period was 13% higher at RM176.4 million compared with RM156.1 million previously.

On prospects, the manager of the Mid Valley Megamall and The Gardens Mall noted that retail sector faces a challenging business environment.

Nevertheless, it said given the current satisfactory performance of its existing business portfolio, the REIT's operational results for the financial year ending Dec 31, 2015 (FY15) are expected to be satisfactory.

The stock closed three sen or 2.3% lower ar RM1.29 yesterday, bringing its market capitalisation to RM4.46 billion.

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