KUALA LUMPUR (July 25): IGB Commercial Real Estate Investment Trust's (KL:IGBCR) (IGB Commercial REIT) net property income (NPI) rose 10.8% to RM34.45 million in the second quarter ended June 30, 2024 (2QFY2024) from RM31.11 million a year earlier, on higher rental income in the current quarter.
It also saw net profit for the quarter increase 2.7% to RM16.51 million compared with RM16.1 million a year earlier. As a result, its earnings per share came in higher at 0.70 sen for 2QFY2024 compared with 0.69 sen for 2QFY2023.
Quarterly revenue also grew 8.2% to RM57.29 million in 2QFY2024 from RM52.95 million in 2QFY2023.
On the back of the improved quarterly results, IGB Commercial REIT has declared a distribution of 0.97 sen per unit for 2QFY2024, payable on Aug 30.
For the cumulative six months ended June 30, 2024 (1HFY2024), NPI also improved by 8.2% to RM68.7 million from RM63.5 million a year earlier, while revenue came in at RM113.25 million, up 7.5% from RM105.32 million in 1HFY2023. Net profit for 1HFY2024 amounted to RM35.41 million, a 5.7% increase from RM33.5 million in 1HFY2023.
Going forward, IGB Commercial REIT said it will continuously focus on marketing available office spaces in its portfolio with intensified leasing strategies anchored on adaptive and flexible tenant programmes and partnerships.
Additionally, IGB Commercial REIT will remain active in its asset management strategies to drive cost efficiencies.
"With the notable surge in public awareness regarding environmental, social and governance considerations, IGB Commercial REIT has adopted strategic business approaches that prioritise sustainability and uphold high standards for our tenants' well-being. Our commitment extends beyond building asset value, as we actively organise community engagement programmes that create a lasting positive impact on the communities we serve," it added.
A pure play office REIT, IGB Commercial REIT's Mid Valley City properties comprise Menara IGB and IGB Annexe, Centrepoint South, Centrepoint North, The Gardens South Tower, The Gardens North Tower, Boulevard offices and retail, and Southpoint offices and retail, while its Kuala Lumpur properties comprise Menara Tan & Tan, GTower and Hampshire Place office.
In a filing with Bursa Malaysia on Thursday, the REIT said occupancy rate at its Mid Valley City properties stood at 92.8% as at June 30, 2024, up from 87.3% a year earlier, while that of its KL city properties was 71.8%, up from 65.3% as at June 30, 2023.
IGB Commercial REIT units closed down 0.5 sen or 1.03% to 48 sen on Thursday, giving it a market capitalisation of RM1.14 billion. The REIT's units have slid 2.04% so far this year.