KUALA LUMPUR: KIP Real Estate Investment Trust (REIT) will focus on retail for growth but is open to improving its industrial portfolio when the right chance 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 properties.”
In the first quarter ended Sept 30, KIP REIT’s net profit jumped 18.1% to RM10.4mil, or 1.71 sen per share from RM8.8mil, or 1.61 sen a year prior.
Revenue for the quarter rose 15.6% to RM22.4mil from RM19.3mil in the same period last year.
KIP said the higher net profit was a result of 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 manager of KIP REIT has proposed a first income distribution of RM9.4mil, 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%.