PETALING JAYA: Analysts have raised their earnings estimates for KIP Real Estate Investment Trust
(KIP-REIT) based on the possibility of stronger rental revision and incremental contributions from new assets.
TA Research raised its earnings projections for the REIT’s financial year 2026 ending June 30 (FY26) and FY27 by 3% and 7%, respectively,
The research house said in a report to clients that it came away from KIP-REIT’s FY25 results briefing last week feeling “upbeat” on the REIT’s near-term prospects.
It said management remained committed to scaling up KIP-REIT’s portfolio through active asset enhancement, strategic partnerships, and accretive acquisitions.
At KIPMall Tampoi in Johor, enhancement works have commenced and are targeted for completion by next February, it noted.
The upgrades will add 10,000 sq ft of net lettable area and include infrastructure improvements, enhanced food and beverage offerings, digital integration, and sustainability features, all aimed at boosting the mall’s footfall and unlocking rental upside.
Separately, in March, KIP-REIT entered into a memorandum of understanding with Aeon Co (M) Bhd for the expansion of AEON Mall Kinta City in Perak.
As part of the deal, AEON has renewed its lease for the existing space and will master-lease the upcoming extension, reaffirming its long-term commitment to the location, TA Research said, adding that both parties are in the final stages of negotiation, with construction expected to commence soon and completion targeted for 2027.
On the acquisition front, the research house reported that progress remains on track for three industrial assets valued at RM75.7mil.
The assets in Sarawak and Johor are expected to be completed soon, while a Klang property is scheduled for completion by year-end.
