Corporate results: IGB REIT, Gadang, PropertyGuru and Kelington

IGB REIT 3Q earnings higher on rental income
IGB Real Estate Investment Trust’s (IGBREIT) net property income (NPI) rose 4.3% year-on-year (YoY) to RM100.7 million in the third quarter ended Sept 30, 2019 (3Q19) due to higher rental income and lower property operating expenses. In an exchange filing yesterday, the trust which owns Mid Valley Megamall and Gardens Mall, declared a 2.31 sen income distribution per unit, to be paid on Nov 29, 2019. IGBREIT rose two sen to RM1.96 yesterday, giving it a market capitalisation of RM6.95 billion.

Gadang 1Q net profit down on lower property sales
Gadang Holdings Bhd’s net profit declined by 10% year-on-year (YoY) to RM14.8 million in the first quarter ended Aug 31, 2019 (1Q20) on lower sales registered in its property division. In an exchange filing yesterday, the group’s revenue rose to RM147 million from RM129 million in 1Q19, due to higher contribution from its construction division. Gadang is optimistic major construction initiatives such as the revival of the East Coast Rail Line project, Pan Borneo Highway project and the development of Bandar Malaysia infrastructure components will be positive for the group.

PropertyGuru cancels IPO on ASX
PropertyGuru Ltd has decided not to proceed with its proposed initial public offering (IPO) on the Australian Securities Exchange (ASX) due to uncertainty in the current IPO market. “This decision took into account current IPO market sentiment,” PropertyGuru chairman Olivier Lim noted in a statement yesterday. Lim said should the company seek new funds, it will do so from its existing shareholder base and access to private capital markets.

Kelington’s liquid CO2 plant in Terengganu commences operations
Kelington Group Bhd’s liquid carbon dioxide (CO2) manufacturing plant in Kerteh, Terengganu, has commenced operations. The integrated engineering solutions provider has invested RM30 million in capital expenditure to establish the liquid CO2 plant and its supporting assets such as transportation vehicles and storage tanks. Kelington’s CEO, Raymond Gan sees tremendous potential for it to fill the supply and demand gap in markets locally and overseas where supply is inadequate or does not meet the high-quality standards required by the food and beverage industry. He noted  initial response for the product has been encouraging and the company will now intensify marketing and sales initiatives to secure orders. The facility has a total production capacity of up to 50,000 tonnes of liquid CO2 per year and can be gradually scale up over the next few years, he said. The new state-of-the-art plant will purify and liquefy the CO2 waste gas of Petronas Gas Processing Plant and produce food grade liquid CO2. Kelington had locked in a 15-year supply agreement with Petroliam Nasional Bhd to acquire the CO2 waste gas.