PETALING JAYA: IGB-REIT is optimistic about the bright outlook for consumer spending, as the easing of movement restrictions, the reopening of economic sectors and national borders bode well for the outlook for retail sales growth in 2022.
In a filing with Bursa Malaysia, the real estate investment trust (REIT) noted that according to Retail Group Malaysia (RGM), Malaysia’s retail sales are expected to grow by 6.3% for 2022, with 16, 5% in the first quarter of 2022 on the back of Chinese New Year celebrations.
However, the FPI remained cautious in the face of challenges such as the impact of the Omicron variant leading to an increase in new infections and an increase in hospitalization rates.
“The rising cost of living and expected increases in interest rates would affect the purchasing power of Malaysian consumers.
“The conflict in Ukraine and the Covid-19 pandemic lockdown in China would affect the supply chain of consumer goods worldwide, and would also lead to even more volatile oil and commodity prices,” said the REIT.
For its first quarter ended March 31, 2022 (1Q22), the REIT recorded a 72.7% year-on-year increase in net property income to RM107.7 million, while revenue increased by 34. 6% to RM133.8 million.
Profit after tax increased by 95.3% year-on-year to RM85.4 million.
Distributable income for 1Q22 was RM91.9 million and distribution per unit was 2.51 sen.
IGB-REIT said that in the quarter under review, income improved due to higher rental income, while the increase in net property income was mainly due to lower rental support provided to tenants. as well as the recovery for depreciation of trade receivables.