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IGB REIT's 3Q net property income rises 6.3% on higher rental income

KUALA LUMPUR (Oct 27): IGB Real Estate Investment Trust (IGB REIT) saw its net property income for the third quarter ended Sept 30, 2015 (3QFY15) grow 6.3% to RM85.17 million from RM80.12 million a year ago, driven by higher total rental income for the period.

In a filing with Bursa Malaysia today, the manager of the Mid Valley Megamall and The Gardens Mall said its revenue for the quarter increased 7.5% to RM121 million from RM112.6 million, due to the same reason.

Its distributable income for the quarter amounted to RM74.7 million or 2.14 sen per unit, consisting of realised profit of RM65.1 million and the non-cash adjustment arising mainly from manager fee payable in units of RM8.1 million.

IGB REIT did not declare any distribution for the current financial period ended Sept 30.

For the cumulative nine months (9MFY15), IGB REIT's net property income added 10.7% to RM261.6 million compared with RM236.3 million in 9MFY14.

Revenue for the period gained 7.5% to RM367.8 million versus RM342.2 million last year.

Its distributable income for the current period-to-date amounted to RM229.8 million or 6.61 sen per unit, consisting of realised profit of RM200.9 million and the non-cash adjustment arising mainly from manager fee payable in units of RM24.6 million.

Going forward, IGB REIT said the retail sector is facing a challenging business environment. -- theedgemarkets.com

Given the current satisfactory performance of its existing business portfolio, the operational results of IGB REIT for the financial year 2015 ending Dec 31 are expected to be satisfactory, it said.

Shares in IGB REIT closed unchanged at RM1.31, bringing its market value to RM4.54 billion.

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