KIP Real Estate Investment Trust reported a 3.5% year-on-year increase in net property income to RM14.4 million for the second quarter ended 31 December 2021 on the back of gross revenue of RM18.5 million.
Realised profit after tax improved 4.5% to RM9.1 million, compared to the RM8.7 million recorded in the same quarter last year. KIP said the better results were mainly driven by proactive cost management, leading to lower operating expenses including utilities, maintenance and housekeeping, reimbursement costs as well as marketing expenses. The total distributable income for the quarter rose 2.2% to RM9.6 million in Q2FY2022 from RM9.4 million a year ago.
Compared to the preceding quarter, gross revenue was 8.0% higher at RM17.1 million, contributed by the improved average occupancy rate and better promotional area income generated during the quarter under review. NPI and realised PAT grew 5.2% and 8.1% respectively against Q1FY2022’s RM13.7 million and RM8.4 million. In line with the better realised PAT, income available for distribution surged 13.1% from RM8.5 million
For the cumulative six months period ended, the total gross revenue was marginally lower, declining 3.3% to RM35.6 million. This was mainly attributed to a lower average occupancy rate and promotional income due to restrictions on activities and events at shopping malls imposed by the government in Q1FY2022. Notwithstanding the lower gross revenue, the NPI was RM28.1 million, an increase of 0.6% over the RM27.9 million recorded in the previous corresponding period.
“Despite the ongoing Covid-19 pandemic, which has a negative impact on world economies, we managed to turn in commendable financial performances in the second quarter FY2022.
As we have now transitioned to phase four of the National Recovery Plan with the resumption of all economic activities in the country, we anticipate that the economy will rebound this year. The easing of the various movement restrictions augurs well for KIP REIT as we saw the returning of footfall and tenants to all our portfolios. However, we remain cautious in the coming quarters as the fast-spreading Omicron variant of the Covid-19 may have an adverse impact on global economies. We will continue to practice fiscal prudence and implement credit control measures,” said Dato’ Eric Ong Kook Liong, the Executive Director of KIP REIT Management Sdn Bhd.
KIP REIT declares a second interim distribution per unit of 1.55 sen per unit, amounting to RM7.83 million for Q2FY2022.
