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- IGB attributed the earnings growth to higher rental income in both its retail and commercial property segments, improved hotel occupancy and room rates, as well as stronger sales of completed residential units at Southpoint Residences in Mid Valley City, Kuala Lumpur.
KUALA LUMPUR (Nov 26): IGB Bhd’s (KL:IGBB) net profit for the third quarter climbed 32.3% to RM97.48 million from RM73.69 million a year ago, driven by stronger contributions from its retail, commercial, hotel and property development divisions.
Revenue for the quarter ended Sept 30, 2025 (3QFY2025) grew 9.8% to RM460.35 million from RM419.31 million, the group's bourse filing on Wednesday showed.
IGB attributed the earnings growth to higher rental income in both its retail and commercial property segments, improved hotel occupancy and room rates, as well as stronger sales of completed residential units at Southpoint Residences in Mid Valley City, Kuala Lumpur.
Earnings per share rose to 7.34 sen from 5.54 sen in 3QFY2024.
Gross margin expanded to 57% from 56.6%, while operating margin rose to 46.6% from 43.8%.
Operating expenses rose 6.2% year-on-year to RM52.28 million, while finance costs declined 11.4% to RM39.93 million.
No dividend was declared for the quarter.
For the cumulative nine-month period, net profit fell 21.6% year-on-year to RM261.87 million from RM334.21 million, despite revenue increasing 14.6% to RM1.41 billion from RM1.23 billion.
Property investment in the retail category remained the largest segment by revenue, contributing RM719.42 million in the nine-month period, up 8.4% from RM663.48 million a year earlier. Commercial segment revenue rose 13.8% to RM191.67 million, while hotel revenue improved 5.5% to RM261.45 million.
Looking ahead, IGB expects modest retail recovery led by essential goods spending, while hotel performance is set to benefit from tourism arrivals, which rose 14.5% year-on-year to 28.2 million visitors between January and August 2025.
"Leveraging on this, the group will continue to enhance its hospitality offerings to deepen customer engagement and drive long-term retention," the group said.
IGB's commercial portfolio of green-certified buildings grew to seven during the quarter, following new GreenRE Gold certifications for both the North and South Towers at Mid Valley Southkey, as well as Menara Tan & Tan.
At Wednesday's market close, IGB shares were up three sen or 0.9% at RM3.38, valuing the group at RM4.59 billion. The counter is up 27.07% year to date.
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