PETALING JAYA: KIP Real Estate Investment Trust
’s (KIP-REIT) prospects look optimistic, buoyed by solid performance of its existing property portfolio, ongoing leasing efforts and operational enhancements.
TA Research remains positive about KIP-REIT’s strategic initiatives, which demonstrated a strong commitment to stakeholder value.
The research house also liked the REIT’s steady progress towards achieving its portfolio expansion target of RM2bil over the next three years, up from the current RM1.4bil.
“Potential earnings upside from new asset additions further strengthens our confidence in its growth prospects.
“We maintain our ‘buy’ recommendation on KIP-REIT with an unchanged target price of RM1.15 (per share), based on an unchanged target yield of 6.25%,” the research house added.
TA Research stated that KIP-REIT is committed to disciplined capital management and aims to deliver sustainable returns to unitholders.
It said the REIT is well-positioned to create long-term value and capitalise on emerging opportunities, focusing on acquiring accretive assets and exploring growth opportunities in the retail and industrial sectors.
For the first half (1H) ended Dec 31, 2024, KIP-REIT posted a 9% increase in core net profit to RM23mil year-on-year.
TA Research noted that the results were in line with expectations, representing 44% of its full-year forecasts.
“We expect stronger 2H results as 1H earnings included only two weeks of contribution from DPulze Shopping Centre and 1.5 months from TF Value Mart Gerik, while the 2H (results) will reflect a full two quarters of impact from both assets,” it added.
The research house said KIP-REIT’s second-quarter dividend per unit (DPU) stood at 1.66 sen, bringing 1H DPU to 3.18 sen.
Based on its last closing price on Jan 21, this translated into a 7.3% annualised dividend yield.
