PETALING JAYA (Aug 26): IGB Bhd’s profit attributable to shareholders nearly doubled to RM146.66 million in the second quarter ended June 30, 2026 (2QFY2026), from RM75.33 million a year earlier, supported by stronger contributions from its retail and commercial property investment businesses, property development and other segments.
Revenue rose 16.1% to RM525.20 million from RM452.41 million in 2QFY2025, while profit before tax (PBT) increased 54.9% to RM265.52 million from RM171.36 million, the property group said in an unaudited Bursa Malaysia filing on Wednesday (Aug 26).
Basic earnings per share rose to 7.37 sen from a restated 3.78 sen. The prior-year EPS was restated to reflect IGB’s one-for-two bonus issue completed in March 2026.
IGB said the higher quarterly PBT was driven by improved contributions from its retail and commercial property investment businesses, property development and other segments.
Retail, commercial property investments strengthen
Its retail property investment business, represented by IGB Real Estate Investment Trust (IGB REIT), recorded revenue of RM241.0 million in the quarter, up 5% from RM229.2 million a year earlier. Profit after tax rose 15% to RM133.6 million from RM115.8 million, mainly on higher rental income.
The commercial property investment business, primarily represented by IGB Commercial REIT, recorded revenue of RM71.2 million, up 10% from RM64.6 million. Profit after tax rose 51% to RM22.1 million from RM14.6 million, which IGB attributed to higher occupancy and average rental rates, as well as lower finance costs.
Property development revenue jumps 171%
Property development revenue jumped 171% to RM82.8 million from RM30.6 million, while segment PBT increased to RM64.6 million from RM12.0 million.
IGB attributed the improvement mainly to sales of residential units at its newly launched The Batai project in Bukit Damansara, as well as a one-off disposal of overseas land by an associate company.
The hotel segment’s revenue increased 7% to RM88.5 million from RM82.6 million, supported by higher occupancy rates and improved average room rates. However, segment PBT fell to RM18.4 million from RM23.0 million, mainly due to an impairment of an associate company arising from exceptional charges recognised during the quarter.
First-half profit rises to RM648.6 mil
For the first half ended June 30, profit attributable to shareholders rose to RM648.64 million from RM164.40 million, while revenue grew 8.2% to RM1.03 billion from RM951.79 million. PBT more than doubled to RM886.99 million from RM366.14 million.
The group recorded a RM453.17 million share of after-tax results from associates and joint ventures for the six-month period, compared with a RM5.49 million loss in the corresponding period a year earlier.
On a quarter-on-quarter basis, however, profit attributable to shareholders fell 70.8% from RM501.98 million in 1QFY2026, while PBT declined 57.3% from RM621.47 million, despite revenue rising 4% from RM504.82 million.
IGB said the sequential decline in PBT reflected the absence of a one-off disposal of an investment and the sale of a business by associate companies, both of which had been recognised in the preceding quarter.
For the first half, the group generated RM406.73 million in net cash from operating activities, compared with RM414.70 million a year earlier. Cash and cash equivalents stood at RM1.83 billion as at June 30, while total borrowings amounted to RM3.50 billion, comprising RM3.40 billion in non-current borrowings and RM101.06 million in current borrowings.
IGB remains cautiously optimistic on hotels
Looking ahead, IGB said its retail portfolio remained positioned to benefit from domestic economic growth and tourism activity. It added that its commercial properties continued to benefit from the market’s “flight-to-quality” trend, while it remained cautiously optimistic on the hotel segment.
The group said the encouraging market reception for The Batai provided a basis for future launches in its development pipeline, although it remained mindful of rising cost pressures across the industry.
IGB did not declare or propose a dividend for 2QFY2026. It paid a special dividend of 2.5 sen per share on June 25 in respect of the financial year ending Dec 31, 2026.
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