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KUALA LUMPUR (July 23): IGB Commercial REIT (KL:IGBCR) rose on Thursday after the trust’s office buildings performed better than expected in the second quarter ended June 30, 2026 (2QFY2026).
The outlook remains bright, according to all three research firms covering the real estate investment trust. IGB Commercial REIT is expected to maintain its momentum in the remaining months of 2026 thanks to higher occupancy and rising rental rates, said Hong Leong Investment Bank in a note.
“The REIT remains a primary beneficiary of the ongoing flight-to-quality trend as corporate occupiers prioritise prime, transit-oriented offices with modern ESG features,” the house said.
IGB Commercial REIT rose as much as 2.5 sen or over 4% to 63 sen, close to its all-time high of 63.5 sen, as over one million units exchanged hands. Market capitalisation stood at RM1.5 billion based on the last price.
The trust, which owns and manages 10 office towers including Menara Southpoint in Mid Valley City, has rebounded from April lows amid US-Iran conflict and is now up about 4% on a year-to-date basis. All three research houses have 'buy' call and the average 12-month target price has risen to 76 sen.
IGB REIT (KL:IGBREIT), its sister trust that manages shopping malls, edged higher on Thursday after reporting results that met consensus expectations. CIMB Securities and MBSB Research upgraded the trust following its recent price decline.
Overall, IGB REIT's long-term outlook is positive, supported by healthy rental reversions — the change in rent upon lease renewal — at flagship Mid Valley Megamall, CIMB Securities said.
For its Mid Valley Southkey Mall, “we expect rental growth to be supported by improving footfall and spending” thanks to the announced Johor-Singapore Special Economic Zone and the Johor Bahru-Singapore Rapid Transit System Link that will start in 2027, the house added.
IGB REIT has larger analyst coverage. The trust now has seven ‘buy’, seven ‘hold’, and no ‘sell’ calls among research firms tracked by Bloomberg. The average target price is RM2.99, implying potential upside of about 9% from current price of RM2.74.
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