PETALING JAYA: KIP Real Estate Investment Trust
’s (KIP-REIT) ongoing asset enhancement initiative at KIPMall Tampoi in Johor Baru is nearing completion and remains on track for a grand opening next month.
According to TA Research, the upgrade does not materially increase net lettable area but is expected to contribute to rental increases and operating efficiency, supported by a refreshed market–anchored neighbourhood mall concept.
Any potential income upsides are expected to come from broader gross-turnover rent, higher parking income, and the potential introduction of new tenants, alongside a reconfigured centre court for promotional and community-led activities.
The REIT’s management said it has a target to grow assets under management to RM2bil by next year, and this is supported by acquisitions across both the retail and industrial segments.
KIP-REIT has completed four acquisitions since last year: KIPMall Desa Coalfields in Selangor, KIPMall Kuantan in Pahang and industrial assets in Bintulu, Sarawak and Pasir Gudang, Johor.
TA Research also upgraded KIP-REIT’s environmental, social and governance (ESG) rating to four-stars from three-stars previously on improved progress in execution and disclosure.
“The REIT has completed portfolio-wide climate risk assessments, adopted ESG-linked financing, and was included in the FTSE4Good Bursa Malaysia Index last June,” the research house said.
In terms of asset enhancements, TA Research said it understands KIPMall Masai in Johor is being evaluated as the next project.
“In addition, following an earlier memorandum of understanding, Aeon Co (M) Bhd and KIP-REIT executed a term sheet last October for the proposed expansion of AEON Mall Kinta City in Ipoh, crystallising the principal commercial terms of the arrangement and improving execution visibility. We remain positive on KIP-REIT’s strategy, given its track record of delivering income increases and asset enhancement,” research house said.
It maintained a “buy” rating on KIP-REIT, raising its target price to RM1.12 from RM1.09 based on an unchanged target yield of 6.5% for this year.
