Apex Securities said the group’s portfolio has expanded to 18 assets with total assets under management of RM1.7bil.
PETALING JAYA: KIP Real Estate Investment Trust
’s (KIP-REIT) earnings outlook remains stable, supported by contributions from newly acquired retail and industrial assets that are estimated to add RM15.3mil annually.
Apex Securities in a report said the group’s portfolio has expanded to 18 assets with total assets under management of RM1.7bil, with management targeting RM2bil by 2027 – reinforcing its growth trajectory.
“Footfall across the retail segment is expected to benefit from ongoing initiatives such as the Sumbangan Asas Rahmah programme and upcoming festive seasons.”
Additionally, the research house said the reopening of KIPMall Tampoi in February 2026 is expected to contribute positively.
This, it said, would be supported by a refreshed tenant mix following selective non-renewals, as well as a 5% to 10% rental upside from higher carpark income and gross turnover-based tenancy structures.
“All identified assets have been injected, while further acquisitions are being explored under a RM220mil allocation, based on current gearing of 39% and a cap of 45%.”
For the second quarter ended Dec 31, 2025 (2Q26), the group’s net profit rose by 46% year-on-year (y-o-y) to RM17.5mil, or an earnings per share of 1.83 sen.
Revenue was up by 45% y-o-y to RM43.5mil.
A major driver of earnings was the performance of D’Pulze Shopping Centre and the acquisition of KIPMall Desa Coalfields.
D’Pulze Shopping Centre delivered RM7.1mil for 2Q26, representing 50.9% of the net property income for the central region.
Retail and industrial properties make up 92.7% and 7.3% of the group’s revenue, respectively.
For the six-month period ended Dec 31, 2025 (1H26), KIP-REIT’s net profit grew by 58% y-o-y to RM34.8mil, or an earnings per share of 3.85 sen. Revenue expanded by 49% y-o-y to RM84.2mil.
KIP-REIT proposed a third income distribution of 1.70 sen per unit for the quarter, payable on March 3, 2026 with the ex-date on Feb 6, 2026.
CIMB Research in a report said the company’s earnings were within expectations.
“Cumulatively, 1H26 distribution per unit stood at 3.5 sen, representing 49% of our and 51% of the consensus FY26 estimates.”
Citing KIP-REIT, the research house said the REIT’s withholding tax on income distribution is still pending, with industry appeals submitted to the Finance Ministry.
