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PETALING JAYA: IGB Real Estate Investment Trust (REIT) has maintained a cautious outlook on the potential challenges in the growth of retail sales, rental rates and occupancy levels in 2023.
It said these challenges have the potential to impact both tenant performance within shopping malls and the financial performance of IGB-REIT.
“IGB REIT remains committed to bringing about long-term value to its stakeholders,” it noted in a filing with Bursa Malaysia.
The trust is committed to actively enhancing tenant retention and maintaining a leading position in the market.
“To achieve this, we have implemented a multifaceted approach, including substantial asset upgrades to ensure our properties remain contemporary and relevant for our tenants,” it said.
IGB REIT’s net profit surged 201% year-on-year (y-o-y) to RM250.7mil in the third quarter ended Sept 30 while revenue rose 7% y-o-y to RM149.7mil.
Earnings per unit climbed to 6.98 sen from 2.33 sen previously.
For the nine-month period, earnings rose 70% y-o-y to RM427.9mil while revenue rose 9.3% y-o-y to RM445.8mil.
IGB REIT has approved a distribution of 97.5% of its quarterly distributable income amounting to RM93.6mil or 2.6 sen per unit, payable on Nov 20.
Furthermore, IGB REIT noted it was actively engaged in elevating the tenant experience at Mid Valley City and KL City Centre, which had risen from 78.9% as at June 30 to 80.9% as at Sep 30.
“We anticipate rental reversions will remain relatively stable, and rental aid for eligible tenants is expected to be minimal,” it added.
IGB REIT is the owner of The Mid Valley City Properties.
This is comprised of seven properties, namely, Menara IGB & IGB Annexe, Centrepoint South, Centrepoint North, The Gardens South Tower, The Gardens North Tower, Boulevard Offices and Retail and Southpoint Offices and Retail, and The KL Properties comprising Menara Tan & Tan, GTower and Hampshire Place Office.
IGB REIT was listed on the Main Market of Bursa Malaysia on Sept 20, 2021 and is the sixth largest Malaysian REIT.
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