IGB REIT 3Q net profit surges 50.8% to RM144.15 million on Southkey mall contribution
IGB Real Estate Investment Trust posted a 50.8% rise in net profit to RM144.15 million for the third quarter ended Sept 30, 2026, driven mainly by The Mall, Mid Valley Southkey in Johor Bahru. Revenue climbed 50.9% to RM249.34 million, while net property income increased 48.3% to RM185.25 million.
PETALING JAYA – IGB Real Estate Investment Trust’s (IGB REIT) net profit rose 50.8% to RM144.15 million in the third quarter ended Sept 30, 2026 (3QFY2026), from RM95.62 million a year earlier, mainly driven by contributions from The Mall, Mid Valley Southkey in Johor Bahru.
Revenue increased 50.9% to RM249.34 million from RM165.20 million, while net property income (NPI) climbed 48.3% to RM185.25 million from RM124.91 million. In its unaudited results filed with Bursa Malaysia on Oct 30, the retail REIT said higher rental income from Mid Valley Megamall and The Gardens Mall in Kuala Lumpur also supported the improved performance.
The Southkey mall contributed revenue of RM78.75 million and NPI of RM61.96 million during the quarter, with no corresponding contribution in the comparative period. Mid Valley Megamall’s revenue rose 2.4% to RM116.86 million, while its NPI edged up 0.5% to RM89.87 million. The Gardens Mall recorded a 5.2% increase in revenue to RM53.72 million, although its NPI fell 5.8% to RM33.42 million.
IGB REIT declared a distribution per unit (DPU) of 3.51 sen, up from 2.77 sen a year earlier. The payout totals RM152.2 million, representing 97.5% of quarterly distributable income. The distribution comprises 3.45 sen taxable and 0.06 sen non-taxable income per unit, payable on Nov 30 to unitholders on the register as at 5pm on Nov 16. The ex-date is Nov 13.
Earnings per unit rose to 3.33 sen from 2.64 sen. For the nine months ended Sept 30, net profit increased 51.4% to RM446.24 million from RM294.70 million. Revenue grew 51.3% to RM751.63 million from RM496.73 million, while NPI rose 51.7% to RM573.43 million from RM377.89 million. Cumulative DPU stood at 10.95 sen, compared with 8.78 sen in the corresponding period last year.
Against the preceding quarter, net profit and revenue each increased 3.5%, while NPI rose 2.3%. The REIT attributed the improvement mainly to higher rental income. The manager expects Malaysia’s retail sector to maintain moderate growth for the remainder of 2026, supported by domestic consumption, tourism and government measures to support household spending. However, it cautioned that price-conscious consumers, rising operating costs, greater retail competition and global economic uncertainties could temper growth.
The manager said its three malls continued to benefit from high occupancy, positive rental reversions and strong tenant demand. It will focus on leasing, optimising the tenant mix, asset enhancements and prudent cost management to keep the malls competitive.
