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PETALING JAYA (May 21): IGB Bhd posted a profit before tax (PBT) of RM621.47 million for the first quarter ended March 31, 2026, surging 219% from RM194.78 million in the corresponding quarter of 2025, primarily driven by a one-off gain from the strategic divestment of UK-based hotel assets and robust performance across its core property investment and hotel segments.
In its Bursa filing yesterday, net profit attributable to owners came in at RM501.98 million, up 464% from RM89.07 million a year ago. Revenue rose marginally by 1% to RM504.82 million from RM499.38 million, supported by higher contributions from the retail, commercial and hotel segments.
The exceptional PBT growth was largely attributable to RM418.91 million in share of after-tax results from associates and joint ventures, reflecting the completion on Jan 9, 2026, of the disposal of Ravencroft Investments Incorporated and the sale of the business and assets of St Giles Hotel London by the group's UK-based associates, 12 Bedford Avenue Ltd and St Giles Hotel Ltd, for a combined consideration of £220 million (approximately RM1.29 billion).
The retail segment under IGB REIT posted total revenue of RM261.3 million and net property income (NPI) of RM159.2 million in 1Q2026, representing increases of 6% and 10% respectively from the year-ago quarter.
The growth reflects higher rental income across the portfolio, with the comparative quarter of 2025 comprising contributions from both IGB REIT and Southkey Megamall prior to the mall's injection into the REIT in November 2025.
The commercial segment, represented by IGB Commercial REIT, reported total revenue of RM68.9 million and NPI of RM21.8 million, up from RM62.3 million and RM14.9 million respectively in 1Q2025, driven by higher occupancy and average rental rates.
Hotel segment revenue increased 5% to RM87.3 million from RM83.5 million, supported by higher occupancy rates and improved average room rates. Segment PBT surged to RM426.2 million from RM10.4 million a year ago, mainly attributable to the one-off disposal gain from the UK hotel assets.
The property development segment recorded revenue of RM22.3 million and PBT of RM5.0 million, down from RM64.0 million and RM12.2 million respectively in 1Q2025, reflecting fluctuations in inventory sales dependent on available stocks and new project launches.
The board declared a special dividend of 2.5 sen per ordinary share for FY2026, payable on June 25, 2026, to shareholders on the register as at June 15, 2026. No dividend was declared in the corresponding prior period.
Total borrowings stood at RM3.52 billion as at March 31, 2026, comprising RM3.29 billion in medium-term notes, RM169.25 million in term loans and RM55.03 million in revolving credit facilities. Cash, bank balances and deposits stood at RM1.56 billion.
Net assets per share attributable to owners rose to RM2.4959 from RM2.2344 at end-2025. Basic earnings per share for the quarter was 25.22 sen, against 4.47 sen in 1Q2025.
On corporate proposals, the group's wholly-owned subsidiary IGB Corp Bhd had on Aug 27, 2025, entered into a joint venture with Southkey City Sdn Bhd to establish Enrich Horizon Sdn Bhd with 70:30 equity participation, to acquire two parcels of leasehold land measuring approximately 859,897 sq ft in Mukim Plentong, Johor Bahru, for RM214.97 million.
The Ministry of Economy granted approval for the land acquisition on March 6, 2026.
On prospects, IGB Bhd said it expects increased footfall at its retail properties driven by expanded retail investment and the national tourism push, while acknowledging that rising operating costs and potential subsidy rationalisation may pressure discretionary spending.
The commercial segment continues to benefit from a "flight-to-quality" environment supported by its fully green-certified portfolio, while the hospitality sector is poised to benefit from the Visit Malaysia 2026 campaign.
The group's property development pipeline features residential launches at The Batai, Bukit Damansara, and Merbau Hub & Residences, Bangsar South, alongside its maiden industrial venture at EKA Industrial Park, with total gross development value exceeding RM1.5 billion.
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