PETALING JAYA: KIP Real Estate Investment Trust
(KIP-REIT) plans to acquire yield-accretive assets and explore growth opportunities in both the retail and industrial segments to drive long-term value.
Its long-term strategy is to scale up operations and expand the REIT’s assets under management to RM2bil over the next three years, TA Research said.
The research house added that management remains optimistic about KIP-REIT’s outlook, supported by the solid performance of its existing property portfolio, active leasing efforts and continuous operational improvements.
They remain committed to prudent capital management and sustainable returns to unitholders, it further added.
Rolling forward its valuation base year to 2026, TA Research set a new target price of RM1.17 per unit, from RM1.15 a unit.
This is based on a target yield of 6.75%.
The research house has reiterated its “buy” call on the stock. KIP-REIT announced on April 10 the acquisition of four retail assets for RM118mil, to be partially funded via a proposed private placement of up to 180 million new units, raising RM132mil.
Proceeds will also support asset enhancement initiatives at KIPMall Tampoi.
