Kuala Lumpur: IGB Bhd has announced a decline in net profit to RM89.07 million for the first quarter ending December 31, 2025, compared to RM185.34 million in the corresponding period last year.

According to BERNAMA News Agency, the property company attributed the drop in profit to a one-time RM108.7 million contribution from a land sale recognized in the first quarter of 2024. Despite the lower net profit, IGB Bhd experienced an increase in revenue, reporting RM499.38 million in 1Q 2025, up from RM416.47 million in 1Q 2024. This growth was driven by stronger performances across all its business segments, especially the retail and property development divisions.

The retail segment, under IGB Real Estate Investment Trust (REIT), recorded a 7.0 percent increase in total revenue, reaching RM171.4 million in 1Q 2025 compared to RM160.6 million in 1Q 2024. Additionally, net property income for this segment rose by 8.0 percent to RM105.0 million from RM96.9 million. The property development division also saw significant growth, with revenue climbing to RM64.0 million in 1Q 2025 from RM13.6 million in the previous year, largely due to sales from the Southpoint Residences project.

Looking forward, IGB remains cautiously optimistic about their financial prospects despite potential economic challenges in key sectors. The group plans to enhance tenant engagement and implement phased asset enhancement initiatives for its commercial segment. In the hospitality sector, efforts will focus on improving guest experiences through the refurbishment of St Giles Gardens Hotel and MiCasa All Suite Hotel, alongside the launch of the CHM Club hotel loyalty program. Additionally, IGB aims to expand its landbank and explore collaborative partnerships in property development.