IGB Reit net profit up more than 170%

 

PETALING JAYA: IGB Real Estate Investment Trust (IGB Reit) posted a net profit of RM145.13mil for the third quarter ended Sept 30, 2014, up more than 170% from RM53.83mil recorded in the same quarter last year.

Revenue was 4% higher at RM112.55mil from RM107.98mil a year ago, mainly due to higher total rental income as well as a revaluation gain of RM85mil.

On Oct 10, IGB Reit announced the revaluation on its investment properties, Mid Valley Megamall and The Gardens Mall, had been conducted by Henry Butcher Malaysia Sdn Bhd.

Based on the valuation letters, their market value as at Sept 30, 2014 were respectively at RM3.61bil and RM1.28bil, from RM3.56bil and RM1.245bil as at Dec 31, 2013 or a revaluation surplus of RM50mil and RM35mil respectively.

In its filing with Bursa Malaysia, IGB Reit said the distributable income for the quarter amounted to RM69.3mil or 2.01 sen per unit.

This consisted of RM60.1mil in realised profit and the non-cash adjustment that arose from manager fee payable in units of RM7.8mil.

For the nine-month period, IGB Reit recorded a 70% increase in net profit to RM261.38mil from RM153.86mil previously.

Revenue for the period was also higher at RM342.17mil from RM316.41mil a year ago.

It added that net property income was 10.8% higher at RM236.3mil compared with the corresponding period in 2013 of RM213.3mil.

The distributable income for the nine-month period amounted to RM203.5mil or 5.9 sen per unit, consisting of realised profit of RM176.4mil and the non-cash adjustment arising from manager fee payable in units of RM23.1mil.

To date, a total of 18.75 million new units were issued by IGB Reit as payment for manager fees.

It added that the manager intended to increase the income and the value of the investment properties through active asset management, asset enhancement initiatives, acquisition growth as well as capital and risk management strategies.

The manager of IGB Reit expected the financial performance for the year ending Dec 31, 2014 to remain satisfactory, given the Government’s measures put in place to relieve the burden on the rakyat following the implementation of the goods and services tax on April 1, 2015.

~ By THE STAR

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