Igb Real Estate Investment Trust

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This year, we continued our strategy and focus on implementing asset enhancement initiatives and expanding our tenant mix to support continued growth for our stakeholders. Our efforts have helped us deliver sustained performance which was also boosted by higher rental income and lower utility expenses. In financial year 2015, we posted gross revenue of RM489.2 million and net profit income of RM342.8 million, reflecting a 5.9% and 9.7% year-on-year growth respectively. Distributions to our unitholders also increased in the year. DPU was 8.19 sen, which is 5.1% higher than the DPU of 7.79 sen for financial year end 2014. Net asset value for IGB REIT as at 31 December 2015 after income distribution was RM3.666 billion, compared with RM3.664 billion the year before. Our performance continues to be bolstered by the strategic location which has enabled continuous visitor football, that allowed us to continue to enjoy almost 100% occupancy in both our malls, as well as command strong rentals. We believe our performance to-date is testimony to the sustained strength of our business.

For financial year end 2016, IGB REIT delivered steady growth driven mainly by higher rental income and lower utility and property upgrade expenses. We posted a gross revenue of RM507.3 million and a net profit income of RM361.1 million for the year, which were 3.7% and 5.3% higher than that recorded in financial year end 2015 respectively. Investment properties are stated at fair value based on valuations performed by independent professional value Henry Butcher Malaysia Sdn Bhd. Henry Butcher Malaysia holds relevant professional qualifications and has recent experience in valuing investment properties in similar locations and categories. A revaluation of Mid Valley Mall and The Gardens Mall has been conducted by Henry Butcher Malaysia and based on the valuation reports dated 5 January 2017, their market values as at 31 December 2016 remained at RM3.61 billion and RM1.28 billion respectively. Net asset value as at 31 December 2016 after income distribution was RM3.672 billion, compared with RM3.666 billion the year before, reflecting a growth of 0.18%. Notably this year, IGB REIT’s fund size increased from 3,471,789,003 units as at 31 December 2015 to 3,493,474,024 units as at 31 December 2016, as a result of the issuance of new units as payment for Manager fees.

For the first half ended 30 June 2016, the Manager announced a distributable income amounted to RM153.8 million or 4.41 sen per unit which 4.32 sen taxable and 0.09 sen non-taxable. The amount was paid on 29 August 2016. For the second half ended 31 December 2016, a distributable income of RM150.3 million or 4.30 sen per unit which 4.18 sen taxable and 0.12 sen non-taxable was announced and the payment date is 28 February 2017. Distributable income for financial year end 2016 amounted to 8.71 sen per unit, up from 8.19 sen per unit in financial year end 2015. The Manager has proposed that at least 90% of IGB REIT’s distributable income will be paid semi-annually for financial year end 2017 subject to IGB REIT’s financial position, earnings, funding, and capital management requirements. This is in line with the Manager’s objective of providing investors with regular and stable income distribution.

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