IGB Reit (Mid-Valley & Gardens)

[winston]

not vested

1Q26: Strong beat
U/G to BUY on earnings uplift

IGB REIT’s 1Q26 results came in above expectations, with core earnings accounting for c.29% of our and consensus full-year forecasts.

Distributable income rose to MYR177.4m (+50% YoY), translating into a higher DPU of 4.0 sen.

Following the results, we upgrade our FY26–28E earnings by 10%/11%/13%, mainly to reflect stronger-than-expected contribution from Mid Valley Southkey (MVS) and sustained rental growth across its core assets.

Consequently, we raise our DDM-TP to MYR3.37 (from MYR2.96) and upgrade IGB REIT to BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/529466.pdf