KUALA LUMPUR: IGB Real Estate Investment Trust’s (IGB REIT) net profit for the first quarter ended March 31, 2026 (1Q 2026) rose to RM162.80 million against RM106.57 million in the same quarter a year ago.
Revenue jumped to RM261.34 million, a 52.4 per cent increase from RM171.44 million a year earlier, mainly driven by contributions from The Mall, Mid Valley Southkey, acquired in November 2025, and higher rental income from Mid Valley Megamall and The Gardens Mall.
On prospects, IGB REIT said the Malaysian retail sector is expected to remain cautious in 2026, with growth shaped by a shift towards essential and value-driven spending.
While the broader economy is projected to expand on the back of domestic resilience, IGB REIT said consumer sentiment is likely to remain measured, with a greater focus on affordability and necessity-based consumption.
“Industry conditions will be influenced by geopolitical uncertainties, rising operating costs, and potential subsidy rationalisation. These headwinds increase pressure on retailers as they navigate shifts in discretionary spending.
“Despite these challenges, footfall and sales activity are expected to be bolstered by the continued expansion of the retail sector and significant growth catalysts, most notably the Visit Malaysia 2026 campaign, which targets 47 million foreign tourist arrivals,” it said in a statement on Wednesday.
To bolster resilience and sustain long-term performance, the manager remains focused on strengthening IGB REIT’s market position across its premier retail portfolio.
IGB REIT said its strategic 2026 initiatives include tenant mix optimisation, active asset management, and strict cost discipline to ensure its portfolio remains a leading destination for both domestic and international shoppers. – BERNAMA
