KIP Real Estate Investment Trust recorded gross revenue of RM21.8 million for the third quarter under review, which translated to an increase of 15.9% as compared to RM18.8 million in the preceding year’s corresponding quarter.
The growth in revenue was attributed to the lease income from the 3 newly acquired industrial properties and the higher occupancy rate recorded from its retail segment. Correspondingly, net property income rose by 13.3% to RM16.4 million in Q3FY2023 from RM14.5 million in Q3FY2022. The Group further reported a 15.4% year-on-year increase in profit after tax to RM10.5 million in Q3FY2023 while income available for distribution for the quarter remained steady at RM10.8 million.
The Southern region remained as the highest revenue contributor, whereby the three malls located in the region reported gross revenue of RM10.3 million or 47.0% of the total revenue. In addition, the Central region’s three malls recorded revenue of RM5.8 million or 26.6%. KIP REIT’s sole mall in the Northern region clocked in RM4.5 million or 20.5% of the total revenue.
For the cumulative nine-month period for FY2023, KIP REIT posted gross revenue of RM61.4 million, an increase of 12.6%, in comparison with RM54.5 million in the previous year’s corresponding period. The increase was largely due to 3 months of lease income from KIP REIT’s 3 newly acquired industrial properties. The profit after tax for 9MFY2023 increased by 3.4% year-on-year to RM27.5 million from RM26.5 million.
The REIT player also encountered an increase in its electricity tariff billing for this quarter. However, this was managed with the implementation of solar panels which have been installed in all the malls.
The Manager of KIP REIT has proposed a third interim income distribution of RM9.4 million, translating to 1.55 sen per unit.
