KUALA LUMPUR: IGB Real Estate Investment Trust (IGB REIT) expects Malaysia’s retail sector to sustain moderate growth for the remainder of 2026, anchored by resilient domestic consumption, tourist arrivals, and government initiatives supporting household spending.
In its quarterly financial report released today, the investment manager cautioned that consumers remain price-conscious, while escalating operating costs, rising retail competition, and broader global economic uncertainties could temper expansion.
Against this environment, the manager noted that its retail assets, Mid Valley Megamall (MVM) and The Gardens Mall (TGM) in Kuala Lumpur, alongside The Mall, Mid Valley Southkey (MVS Mall) in Johor Bahru continue to demonstrate operational resilience, backed by high occupancy levels, positive rental reversions, and sustained tenant demand.
The trust plans to focus on proactive leasing, tenant-mix optimisation, and asset enhancement initiatives to keep its malls competitive.
For the third quarter ending Sept 30, 2026 (3Q26), IGB REIT’s net profit jumped 50.75% year-on-year (y-o-y) to RM144.15 million from RM95.62 million.
Quarterly revenue surged 50.93% y-o-y to RM249.34 million compared to RM165.2 million in the previous corresponding period. The robust top- and bottom-line expansion was driven by the full revenue and profit contribution from MVS Mall, alongside higher rental billings generated across MVM and TGM.
On a quarter-on-quarter (q-o-q) basis, revenue rose 3.48% from RM240.95 million registered in the second quarter ended June 30, 2026 (2Q26). Net profit attributable to unitholders grew 3.50% q-o-q from RM139.28 million in 2Q26, lifted primarily by stronger rental income in the current quarter.
For the cumulative nine months ended Sept 30, 2026 (9M26), net profit attributable to unitholders climbed 51.42% y-o-y to RM446.24 million from RM294.70 million. Nine-month revenue rose 51.31% to RM751.63 million against RM496.73 million in 9MFY25.
In tandem with the performance, the manager declared an income distribution per unit (DPU) of 3.51 sen for the quarter, up 26.71% from 2.77 sen in 3Q25. This raises the cumulative nine-month payout to 10.95 sen per unit, compared with 8.78 sen distributed in the corresponding period last year.
The 3Q26 distribution amounts to RM152.15 million, representing 97.5% of the quarter’s distributable income. It will go ex on Nov 13, with entitlement on Nov 16 and payment scheduled for Nov 30, 2026.