Latest news with #IGBREIT
New Straits Times
24-04-2025
- Business
- New Straits Times
IGB REIT Q1 net profit rises to RM106mil
KUALA LUMPUR: IGB Real Estate Investment Trust (REIT) posted a higher net profit of RM106.58 million for the first quarter ended March 31, 2025 (Q1 2025) from RM99.61 million in Q1 2024. Revenue rose by 5.4 per cent to RM171.44 million compared with RM162.56 million previously, IGB REIT Management Sdn Bhd, the manager of IGB REIT, said in a filing with Bursa Malaysia. Similarly, net property income (NPI) grew by 7.1 per cent to RM133.1 million in Q1 2025 from RM124.2 million in Q1 2024. "The increase in both the revenue and NPI were mainly due to higher rental income in Q1 2025," it said. The manager said it has proposed a distribution per unit (DPU) of 3.19 sen for Q1 2025 up 0.23 sen or 7.8 per cent versus Q1 2024. This translates into an annualised distribution yield of 5.75 per cent, based on IGB REIT's unit price of RM2.25 as at March 31, 2025. On outlook, IGB REIT remains steadfast in its commitment to delivering long-term value to stakeholders through ongoing property upgrades, tenancy mix management, and sustainability-linked improvements. IGB REIT owns two major retail assets, Mid Valley Megamall and The Gardens Mall, located in Mid Valley City, within the Klang Valley. Committed to customer experience and cost efficiency, the manager said both malls are undergoing asset enhancement initiatives to upgrade their spaces and streamline operations. IGB REIT is managed and administered by IGB REIT Management, which works to increase income and enhance asset value over time with the objective to maximise returns from investments.
New Straits Times
24-04-2025
- Business
- New Straits Times
REIT earnings top expectations, target prices revised up
KUALA LUMPUR: Real estate investment trusts (REITs) surprised on the upside in the first quarter of 2025, with Axis REIT, IGB REIT and IGB Commercial REIT all delivering earnings that exceeded analysts' expectations. Hong Leong Investment Bank (HLIB) upgraded its forecasts across the board, citing strong rental income, improved occupancy and cost efficiencies as key drivers of the outperformance. Axis REIT posted a 25.5 per cent year-on-year rise in core net profit to RM50.2 million, driven by positive rental reversions and reduced financing costs. Portfolio occupancy improved to 97 per cent and the trust declared a dividend of 2.5 sen per unit. HLIB noted that Axis REIT continues to benefit from its exposure to industrial assets, which remain in demand as multinational firms diversify supply chains amid rising geopolitical risks. With a strengthened balance sheet following a RM449.7 million private placement last year, it said Axis REIT has the capacity to pursue further acquisitions. The firm maintained a "Buy" call and raised its target price to RM2.06. IGB REIT, which owns Mid Valley Megamall and The Gardens Mall, delivered a core net profit of RM110.6 million, up 8.1 per cent from a year ago, on the back of higher rental revenue and flat operating costs. Both properties remained fully occupied, while a dividend of 3.2 sen per unit was declared. HLIB expects earnings momentum to be supported by full-year contributions from the newly launched South Court at Mid Valley. The potential injection of the Mid Valley Southkey portfolio, valued at around RM2.3 billion, is also seen as a strategic growth catalyst. However, the firm maintained a "Hold" rating, citing limited upside as much of the near-term growth appears priced in. The target price was revised upward to RM2.29. IGB Commercial REIT recorded a 27 per cent jump in core net profit to RM24 million, exceeding expectations due to stronger occupancy and a sharp reduction in maintenance costs. The trust's portfolio occupancy rose to 89 per cent, with average rental rates edging higher to RM6.4 per square foot. This was achieved despite the broader Klang Valley office market, where vacancy rates remain elevated and rental reversions are largely muted. HLIB highlighted the trust's strategic advantage, particularly its assets within Mid Valley City, which continue to command resilient demand. The REIT was upgraded to "Buy," with a target price raised to 60 sen from 52 sen.
New Straits Times
23-04-2025
- Business
- New Straits Times
IGB Reit 1Q net profit rises to RM106.58 mln
KUALA LUMPUR: IGB Real Estate Investment Trust (REIT) posted a higher net profit of RM106.58 million for the first quarter ended March 31, 2025 (1Q 2025) from RM99.61 million in 1Q 2024. Revenue rose by 5.4 per cent to RM171.44 million compared with RM162.56 million previously, IGB REIT Management Sdn Bhd, the manager of IGB REIT, said in a filing with Bursa Malaysia. Similarly, net property income (NPI) grew by 7.1 per cent to RM133.1 million in 1Q 2025 from RM124.2 million in 1Q 2024. "The increase in both the revenue and NPI were mainly due to higher rental income in 1Q 2025," it said. The manager said it has proposed a distribution per unit (DPU) of 3.19 sen for 1Q 2025 up 0.23 sen or 7.8 per cent versus 1Q 2024. This translates into an annualised distribution yield of 5.75 per cent, based on IGB REIT's unit price of RM2.25 as at March 31, 2025. On outlook, IGB REIT remains steadfast in its commitment to delivering long-term value to stakeholders through ongoing property upgrades, tenancy mix management, and sustainability-linked improvements. IGB REIT owns two major retail assets, Mid Valley Megamall and The Gardens Mall, located in Mid Valley City, within the Klang Valley. Committed to customer experience and cost efficiency, the manager said both malls are undergoing asset enhancement initiatives to upgrade their spaces and streamline operations. IGB REIT is managed and administered by IGB REIT Management, which works to increase income and enhance asset value over time with the objective to maximise returns from investments.
