IGB Real Estate Investment Trust (IGB REIT) and its sister trust, IGB Commercial REIT, recorded solid improvements in net property income (NPI) for the fourth quarter, supported by stronger rental collections and stable occupancy across their portfolios.
For the quarter ended Dec 31, 2025 (4QFY2025), retail-focused IGB REIT reported a 44.3% year-on-year jump in NPI to RM155.7 million, compared with RM107.9 million previously. Quarterly revenue also rose 31.6% to RM208.3 million, driven by higher rental income and additional contributions from Mid Valley Southkey Mall, following its acquisition in late 2025.
On a full-year basis, IGB REIT’s FY2025 NPI increased 17.1% to RM533.6 million, while revenue climbed 12.6% to RM705.1 million, reflecting resilient consumer demand and the strength of well-located destination retail assets.
Meanwhile, IGB Commercial REIT, which focuses on office properties such as Menara IGB, GTower and Menara Tan & Tan, posted a 37.5% increase in quarterly NPI to RM38.8 million, alongside a 14.3% rise in revenue to RM68.8 million. Full-year NPI grew 17.5% to RM153.3 million, supported by consistent leasing activity and portfolio occupancy of 92%.
Distributions Improve on Strong Earnings
IGB REIT declared a distribution of RM128.4 million, equivalent to 2.97 sen per unit, representing 97.5% of its distributable income for the quarter. This brought its total distribution per unit (DPU) for FY2025 to 11.75 sen, up from 10.70 sen a year earlier.
IGB Commercial REIT declared a distribution of RM26.4 million, or 1.10 sen per unit, amounting to 95% of its distributable income. Total DPU for the year rose to 4.23 sen, compared with 3.62 sen previously. Both REITs will pay distributions on Feb 27.
Outlook: Resilience in Retail and Office Markets
Looking ahead to 2026, IGB REIT expects the retail environment to remain supportive, underpinned by resilient domestic consumption, improving purchasing power and a stable interest rate environment. Tourism growth and deeper regional economic integration are also expected to benefit destination assets such as Mid Valley Southkey Mall.
However, the REIT noted that consumer spending patterns are becoming more selective, with steady demand for essentials, cautious discretionary spending, and continued momentum in digital and omnichannel retail. Rising operating costs and compliance requirements mean continued focus on operational efficiency, cost discipline and asset productivity.
For IGB Commercial REIT, the trust believes it is well positioned to navigate a more selective office market, supported by effective leasing strategies and a fully green-certified office portfolio. This positions the REIT favourably as occupiers increasingly prioritise sustainability, workplace quality and cost efficiency — key drivers for office space in Bukit Jalil and prime commercial property in KL.
Valuation and Market Performance
Based on AskEdge data, IGB REIT trades at the highest price-to-earnings multiple among peers at 29.5 times, followed by Pavilion REIT at 20.8 times, with IGB Commercial REIT at 15.8 times.
At market close on Wednesday, IGB REIT units rose one sen to RM2.86, giving it a market capitalisation of RM12.4 billion. IGB Commercial REIT ended slightly lower at 63 sen, valuing the trust at RM1.54 billion.
From a broader property perspective, the continued strength of office and retail REITs complements demand for industrial land in Selangor, factories in Puchong, and industrial property in the Subang area, as businesses seek well-connected locations supported by robust commercial and retail ecosystems.
