Operational improvements to bolster KIP-REIT earnings


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PETALING JAYA: KIP Real Estate Investment Trust’s (KIP-REIT) earnings outlook is supported by its portfolio performance, proactive leasing, and ongoing operational improvements, analysts say.

CIMB Research said KIP-REIT reported core net profit of RM17.9mil, up 68.6% year-on-year (y-o-y) for the first quarter of its financial year ending June 30, 2026 (1Q26). The results came in at 26% of the research house’s full-year forecast and 27% of consensus.

“In 1Q26, KIP-REIT recorded strong net property income of RM29.7mil, up 51.1% y-o-y, driven by robust revenue growth of 52.6% y-o-y.

“The stronger revenue performance was supported by higher occupancy rates and positive rental revisions across its seven existing KIPMalls, alongside incremental contributions from newly acquired assets,” the research house said in a report yesterday.

The group’s portfolio occupancy improved to 98.3%, up 3.9 percentage points y-o-y, as of end-1Q26.

CIMB Research said this underscores KIP-REIT’s strong tenancy retention and proactive asset-management strategies.

“We anticipate KIP-REIT’s earnings to strengthen quarter-on-quarter in 2Q26, supported by the full quarter contributions from its newly acquired assets in 1Q26.

“Collectively, these assets are projected to contribute approximately 8% to total rental income in 2Q26,” CIMB Research said.

The research house maintained a “buy” call on KIP-REIT with a target price of 95 sen a share.

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