29-07-2025
IGB REIT Posts 13% Increase In Net Profit To RM92 Million For 2QFY25
For the second quarter ended 30 June 2025, IGB REIT recorded total revenue of RM160.1 million, an increase of 6.8% compared to RM150.0 million in the same quarter last year. NPI rose 9.5% to RM119.9 million, compared to RM109.5 million in
2Q24. Net profit for the quarter came in at RM92 million against RM81 million in the preceding year's quarter.
Year-to-date total revenue rose 6.1% to RM331.5 million, compared with RM312.5 million in the same period in 2024. In line with this, NPI increased by 8.2% to RM253.0 million from RM233.7 million.
The group said the growth in revenue and NPI were primarily driven by higher rental income during the quarter and current year-to-date.
The Manager had approved a distribution of 97.5% of IGB REIT's quarterly distributable income, amounting to RM102.2 million or 2.82 sen per unit. Based on IGB REIT's unit price of RM2.54 as of 30 June 2025, this translates into an annualised distribution yield of 4.77%.
The retail sector is expected to face headwinds from rising cost pressures, including electricity tariff hikes, minimum wage increases, and the mandatory 2% EPF contribution for foreign workers. The expanded coverage of the sales and service tax (SST) is also likely to impact consumer spending. In its 28th Malaysia Retail Industry Report, Retail Group Malaysia has also lowered its full-year 2025 retail sales growth forecast downward to 3.1% from 4.3% due to normalised seasonal demand and rising prices.
Despite these challenges, IGB REIT is optimistic of long-term opportunities through its expansion strategy. The proposed acquisition of The Mall, Mid Valley Southkey, announced on 24 June 2025 and targeted for completion in 4Q25, is expected to diversify and strengthen its investment property portfolio, supported by strategic developments such as the Johor-Singapore Special Economic Zone (JS-SEZ) and the Rapid Transit System (RTS) Link. Cross-border spending, aided by a strong Singapore dollar, further reinforces the positive outlook.
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