IGB’s third-quarter profit climbs 32% on stronger rental income and improved hospitality performance

IGB Bhd (IGB) reported a solid set of results for the third quarter of 2025, with net profit rising 32.3% to RM97.48 million compared with the same period last year. The improvement was fuelled by stronger rental revenue from its commercial property in KL and retail assets, better hotel occupancy, and brisk sales of completed units at Southpoint Residences in Mid Valley City.

For the three months ended Sept 30, 2025, group revenue expanded nearly 10% year-on-year to RM460.35 million, supported by broad-based improvements across its retail, commercial, hotel and development divisions. The recovery in corporate leasing activities—particularly for well-located office assets near major hubs such as Bukit Jalil and the Subang area—also helped lift performance.

IGB noted that the uptick in hotel room demand and higher average room rates contributed meaningfully to earnings, benefitting from steady tourism flows into Kuala Lumpur. Residential sales momentum also strengthened, reflecting ongoing interest from buyers working in nearby commercial centres and industrial corridors that include areas such as Puchong and Selangor’s established industrial land zones.

The group’s margins also improved during the quarter, with gross margin increasing to 57% and operating margin rising to 46.6%. Operating expenses saw a modest 6.2% uptick, while finance costs declined by 11.4% to RM39.93 million. No dividend was declared for the period.

For the first nine months of the year, however, net profit fell 21.6% year-on-year to RM261.87 million, despite revenue growing 14.6% to RM1.41 billion. Retail property investment remained the group’s key revenue contributor at RM719.42 million, while commercial property income rose nearly 14% to RM191.67 million. Hotel revenue advanced 5.5% to RM261.45 million as the hospitality sector continued its gradual rebound.

Looking ahead, IGB expects a steady recovery in retail performance, driven by consistent demand for essential goods. The hospitality segment is also poised for further improvement, supported by higher tourist arrivals—which climbed 14.5% year-on-year to 28.2 million visitors between January and August 2025.

The group also expanded its portfolio of green-certified commercial assets to seven buildings during the quarter. Both the North and South Towers at Mid Valley Southkey received GreenRE Gold certifications, as did Menara Tan & Tan, reinforcing IGB’s positioning as a leading player in sustainable commercial property in KL.

At the close of Wednesday’s session, IGB’s share price rose three sen to RM3.38, valuing the company at RM4.59 billion. The counter has gained more than 27% since the start of the year.