Higher rental income lifts IGB REIT, IGB Commercial REIT’s 3Q property income

• Retail-focused IGB REIT reported a 9.46% increase in 3QFY2025 NPI to RM124.9 million, from RM114.11 million in 3QFY2024, as revenue rose 6.4% to RM165.2 million from RM155.27 million, according to its Bursa Malaysia filing.

KUALA LUMPUR (Oct 22): IGB Real Estate Investment Trust (KL:IGBREIT) and its sister trust, IGB Commercial REIT (KL:IGBCR), posted higher net property income (NPI) for the third quarter ended Sept 30, 2025 (3QFY2025), supported by stronger rental income.

Retail-focused IGB REIT reported a 9.46% increase in 3QFY2025 NPI to RM124.9 million, from RM114.11 million in 3QFY2024, as revenue rose 6.4% to RM165.2 million from RM155.27 million, according to its Bursa Malaysia filing.

Distributable income came in at RM102.8 million, which included non-cash adjustments arising from net fair-value changes on investment properties amounting to RM7 million, up 3.42% from RM99.40 million.

The REIT declared a distribution per unit (DPU) of 2.77 sen for 3QFY2025, up from 2.68 sen a year earlier, payable on Nov 20. This represents an annualised yield of 4.22%, based on its closing price of RM2.78 on Sept 30.

IGB Commercial REIT—which focuses on commercial assets, with a portfolio that includes Menara IGB, GTower and Menara Tan & Tan—recorded an 11.84% rise in NPI to RM37.64 million from RM33.66 million, while revenue climbed 11.56% to RM64.2 million from RM57.55 million.

Its distributable income came in at RM26.13 million—up 14% from RM22.92 million—and included non-cash adjustments of RM2.8 million from fair-value changes and RM2.2 million in management fees payable in units.

IGB Commercial REIT declared a DPU of 1.03 sen, as opposed to 0.94 sen a year ago, also payable on Nov 20.

For the first nine months of FY2025 (9MFY2025), IGB REIT’s NPI rose 8.64% to RM377.89 million from RM347.83 million, as revenue grew 6.18% to RM496.73 million from RM467.8 million.

IGB Commercial REIT’s NPI for 9MFY2025 climbed 11.95% to RM114.57 million from RM102.34 million while revenue expanded 11.89% to RM191.1 million from RM170.8 million.

Both REITs acknowledged that their operating environment remains challenging, citing rising electricity tariffs, higher minimum wages and the expanded sales and service tax (SST), all of which could weigh on margins.

Nevertheless, IGB REIT said the acquisition of The Mall, Mid Valley Southkey, slated for completion by end-November, is expected to be accretive to its portfolio.

“Supported by strategic developments like the Johor–Singapore Special Economic Zone, the Rapid Transit System (RTS) Link and stronger Singapore dollar-driven cross-border spending, the asset is expected to contribute positively to IGB REIT’s diversification and regional growth, despite a still challenging retail environment,” it said.

As for IGB Commercial REIT, which had a portfolio occupancy rate of 92% in 3QFY2025, it said it will continue to strengthen its portfolio through a tenant-centric strategy. It said its performance remains supported by its focus on tenant retention, flexible space solutions and proactive engagement with occupiers.

At Wednesday’s close, IGB REIT slipped one sen or 0.38% to settle at RM2.64, giving it a market capitalisation of RM9.57 billion.

IGB Commercial REIT was up half a sen or 0.83% at 61 sen, valuing it at RM1.47 billion.

Both trusts are sponsored and managed by entities within the IGB Bhd (KL:IGBB) group.

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.