IGB Bhd posts 0.2% rise in 2Q net profit; quarterly revenue up 14.2% on improved performance across all business segments

• The commercial segment, via IGB Commercial REIT, saw revenue expand 14.1% on improved occupancy and average rental rates. The hotel division posted a 5% rise in revenue, backed by higher occupancy and average room rates.

KUALA LUMPUR (Aug 27): IGB Bhd reported a net profit of RM75.33 million for the second quarter ended June 30, 2025 (2QFY2025), a 0.2% rise from RM75.18 million a year earlier.

In a bourse filing on Tuesday, quarterly revenue rose 14.2% year-on-year to RM452.41 million, compared with RM396.78 million previously, supported by stronger contributions across all business segments.

The retail segment, under IGB Real Estate Investment Trust, recorded a 7% revenue increase on higher rental income.

Meanwhile, the commercial segment, via IGB Commercial REIT, saw revenue expand 14.1% on improved occupancy and average rental rates. The hotel division posted a 5% rise in revenue, backed by higher occupancy and average room rates. The property development segment more than tripled its revenue, driven by sales of completed units at Southpoint Residences in Mid Valley City.

The group did not declare a dividend for the quarter under review.

For the first half of the financial year, net profit stood at RM164.40 million, while revenue grew 17% to RM951.79 million from RM813.23 million in the same period last year.

Looking ahead, IGB said the retail and commercial markets remain challenging due to rising utility tariffs, higher wages, the expansion of the Sales and Service Tax, and market oversupply. Nonetheless, it expects resilience in both segments through ongoing asset enhancement efforts, proactive tenant management, and integrated city offerings.

The group described the outlook for the hotel sector as positive, supported by Malaysia’s growing appeal as a tourism destination, underpinned by national policies and a diverse portfolio of attractions. It said it would continue to build on this momentum through portfolio refurbishments and the CHM Club loyalty programme, aimed at enhancing guest experience, strengthening customer engagement, and supporting long-term loyalty.

In property development, IGB expects continued momentum, aided by the recent Overnight Policy Rate cut. Sales of Southpoint Residences are expected to continue until year-end, while upcoming projects include strata villas at Jalan Batai in Damansara Heights and industrial developments in Labu, Negeri Sembilan. 

The group remains focused on leveraging its diversified portfolio and strategic initiatives to navigate evolving market conditions.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.