Malaysia-listed retail real estate investment trust IGB REIT has reorted gross revenue of MYR112.6 million for its 3Q2014, representing a growth of 4.3% against MYR108 million reported for the corresponding quarter in 2013.
Net property income (NPI) for the period was recorded at MYR 80.1 million, up 8.7% year-on-year compared to the MYR73.7 million reported in 2013. Subsequently income to be distributed for the current quarter stands at MYR69.3 million or 2.01 sen per unit.
The REIT, whose portfolio consists of Malaysian suburban shopping centres Mid Valley Megamall and The Gardens Mall, has attributed results for the quarter mainly due to higher total rental income in the current quarter.
Despite the impending implementation of a goods and services tax from 2015, IGB remains optimistic that Malaysians will not shy away from shopping centres to purchase staples and necessities.
“Whilst continuing to focus on its fiscal transformation agenda, the government has taken further steps to relieve the burden on the rakyat (citizens) in view of the implementation of GST on 1 April 2015. As such, the proposed list of zero rated or exempted items has been widened to further control the post-GST cost on basic necessities” said IGB REIT in a statement on the quarter’s results.
“The government has also restated its commitment to reduce income tax by 1% for companies (effective year of assessment 2016), and by 1% to 3% for individuals (effective year of assessment 2015). This is in line with making Malaysia more competitive in the region and the trend of gradually shifting from income tax to consumption tax”, the REIT added, optimistic on Malaysian spending in the future.
Units of IGB REIT are currently listed on the Bursa Malaysia at MYR1.30.