For the quarter under review, KIP REIT registered gross revenue of RM22.4 million, which translated to an increase of 16.5% as compared to RM19.2 million in the preceding year’s corresponding quarter. Net property income rose by 14.3% to RM16.2 million in Q4FY2023 from RM14.2 million in Q4FY2022.
The group further reported a 7.9 % year-on-year increase in realised profit after tax to RM10.2 million in Q4FY2023 while income available for distribution for the quarter remained steady at RM10.5 million. The higher PAT was a result of the contribution from its 3 industrial properties and higher occupancy rate for retail.
The revenue split between the investment properties in the retail and industrial segment was 94.3% and 5.7% respectively. For the retail segment, the Southern region remained as the highest revenue contributor to KIP REIT, whereby the three malls located in the Southern region reported gross revenue of RM10.5 million or 46.7% of the total revenue. In addition, the Central region’s three malls recorded revenue of RM6.2 million or 27.8%. KIP REIT’s sole mall in the Northern region clocked in RM4.4 million or 19.8% of the total revenue.
For the full year, KIP REIT posted gross revenue of RM83.8 million, an increase of 13.6% in comparison to the previous year’s RM73.7 million. The increase was it said was largely due to 6.5 months of lease income from the 3 industrial properties which were added to the portfolio in December 2022. NPI and realised PAT clocked in at RM62.2 million and RM37.7 million, which translated to an increase of 9.5% and 4.6% respectively. In addition, the total income available for distribution of RM38.8 million was a commendable 3.8% higher, as compared to RM37.3 million a year ago.
Based on an annual revaluation by independent registered valuers, KIP REIT recorded an RM23.1 million gain in the fair value across its investment properties.
The Manager of KIP REIT has proposed a final income distribution of RM10.61 million, translating to 1.75 sen per unit, which includes a non-taxable portion of approximately 0.97 sen per unit derived from capital allowances and tax-exempt income. The book closure is fixed for 8 August 2023 and payment of the proposed income distribution will be made on 29 August 2023. Based on the closing price of RM0.90 on 24 July 2023, the trailing twelve months’ distribution per unit gives a yield of approximately 6.90%.
