IGB Corp FY2011 net profit, revenue jumps

IGB Corporation Bhd posted an increase of 36.09 per cent in net profit to RM237.65 million for the financial year ended Dec 31, 2011 from RM174.62 million previously.

Revenue for the year rose to RM772.13 million from RM719.36 million a year ago.

For the fourth quarter (Q4), net profit surged to RM91.88 million from RM53.1 million in the previous corresponding period due to the improved performance by the hotel division as well as the inclusion of a one-off gain on the disposal of an associate company.

Revenue in Q4 was up by five per cent to RM225.03 million from RM214.98 million in the same period previously due to higher contributions from property investment, hotel and construction divisions.

IGB said although global economic conditions are still expected to be challenging, it is envisaged that the local economy would continue to grow, albeit at a moderate pace.

“The group’s three major operating sectors - property development, property investment and hotel - are not expected to be significantly adversely affected, barring a drastic change in the global and local economic conditions,” it said.

For property development, the group is targeting to launch a couple of high-end condominium developments.

In the commercial sector, all office buildings located in Mid Valley City have achieved occupancy rates in excess of 95 per cent while rental renewals in 2011 have shown a five per cent to 20 per cent increase.

The total rental collections are therefore expected to increase in the current year, it added.

In the retail segment, the group’s two major shopping malls, namely, Mid Valley Megamall and The Gardens Mall are currently enjoying 100 per cent occupancy and contributions from these malls are expected to improve compared to the last financial year.

IGB is confident the operational results for the current fiscal year will be better than the previous year.

By Bernama