KIP REIT aims for RM2bil AUM

KIP REIT chief executive officer Valerie Ong Pui Shan

KUALA LUMPUR: KIP Real Estate Investment Trust (KIP REIT) aims to scale up its operation and increase total assets under management to RM2bil in the next three years, according to chief executive officer Valerie Ong Pui Shan.

Therefore, Ong said KIP REIT will continue exploring opportunities for income-producing real estate assets for commercial properties, including industrial facilities, logistic facilities, and warehouse facilities.

“Looking ahead, we maintain a positive outlook, buoyed by the strong performance of our existing property portfolio and strategic initiatives to enhance the leasing and operational efficiencies, coupled with the asset enhancement initiatives that we have put in place while pursuing investments of high-quality,” she said in a statement.

In the third quarter ended March 31, KIP REIT posted a net profit of RM10.2mil compared with RM10.5mil in the same corresponding period last year.

KIP REIT’s revenue rose by 12.5% to RM24.5mil from RM21.8mil in the corresponding period last year mainly attributed to the central region’s retail revenue growth of 38.7%.

The retail segment’s investment properties contributed RM23.2mil or 94.8% of the total gross revenue.

The southern region recorded RM10.7mil, equivalent to 46.2% of the retail segment revenue, followed by the central region’s RM8.1mil or 34.6%.

The northern region, solely represented by AEON Mall Kinta City, in turn accounted for 19.2% or RM4.5mil.

The industrial segment, which comprises the three industrial properties in Port Klang, contributed 5.2% or RM1.3mil of its revenue.

For the cumulative nine months ended March 31, KIP REIT’s revenue increased 13.3%, year-on-year to RM69.5mil from RM61.4mil.

Its net property income and net profit rose 11.9% and 13.9% respectively to RM51.4mil and RM31.3mil.

The total income available for distribution was RM32.1mil, up 13.6% from RM28.2mil for the preceding year’s corresponding period.

“Our average occupancy rate across our 11 properties was 94% as at March 31, proving the success of our investment strategy. The nature of our investment policy predominantly focused on suburban community-centric shopping malls curated for the mass market, which is very relevant in the current economic landscape,” Ong said.

The manager of KIP REIT has proposed a third income distribution of RM9.9mil, translating to 1.60 sen per unit, which includes a non-taxable portion of 0.36 sen per unit derived from capital allowances and tax-exempt income which is not subject to tax.

The book closure date is fixed for May 9 and payment of the proposed income distribution will be made on May 28.

Based on the closing price of RM0.90 on April 23, the trailing twelve months’ distribution per unit gives a yield of approximately 7.2%.

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