KUALA LUMPUR: KIP Real Estate Investment Trust (KIP REIT) will focus on the retail segment for growth but is open to improving its industrial portfolio if the right opportunities comes along.
“The retail segment will remain as the primary engine of growth for KIP REIT. That said, we are on the lookout to enhance our industrial portfolio if the right opportunity arises,” chief executive officer Valerie Ong Pui Shan said in a statement.
Ong said KIP REIT has kickstarted the new financial year on a strong footing.
“With occupancy rates of over 90% across many of our KIPMalls, this demonstrates our ability to attract the right mix of shoppers and tenants to our propererties,” she said.
In the first quarter (1Q24) ended Sept 30, KIP REIT’s realised profit after tax (PAT) increased by 18.2% to RM10.4 million, or 1.71 sen per share from RM8.8 million, or 1.61 sen a year prior.
Its gross revenue rises to RM22.4 million compared to RM19.3 million the year before, up by 15.6%.
“The higher PAT was a result ofof the contribution from its three 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,” the company said.
For the retail segment, the company said Southern region remained as the highest revenue contributor to KIP REIT, whereby the three malls located in the region reported gross revenue of RM10.4 million or 49.5% of the total revenue.
“The Central region’s three malls recorded revenue of RM6.2 million or 29.3%. KIP REIT’s sole mall in the Northern region clocked in RM4.5 million or 21.2% of the total revenue,” it said.
KIP REIT added that it had obtained the unitholders’ approval for the proposed acquisition of KIPMall Kota Warisan and it is on track to
complete our asset enhancement initiatives (AEI) at KIPMall Bangi this year.
The manager of KIP REIT has proposed a first income distribution of RM9.4 million, translating to 1.55 sen per unit.
The book closure is fixed for Nov 3, 2023 and payment of the proposed income distribution will be made on Nov 23, 2023.
Based on the closing price of RM0.895 on Oct 20, the trailing twelve months’ distribution per unit gives a yield of approximately 7.04%.
