PETALING JAYA: KIP Real Estate Investment Trust
(KIP REIT) reported stronger financial performance for the third quarter ended March 31, 2026 (3Q26), supported by contributions from existing assets and newly acquired properties, while proposing a RM435mil acquisition to further expand its portfolio.
Quarterly gross revenue rose 12.9% to RM44.6mil from RM39.5mil a year earlier, while net property income increased 17.6% to RM32.3mil. Profit after tax grew 31.4% to RM18.2mil.
For the nine-month period, gross revenue climbed 33.9% to RM128.9mil, with profit after tax rising 47.5% to RM52.9mil.
The retail segment remained the main contributor, accounting for 92.7% of revenue, while the industrial segment posted growth of 86%, albeit from a lower base.
In line with its performance, the group proposed a third income distribution of RM16.6mil, or 1.73 sen per unit, bringing year-to-date distribution per unit to 5.23 sen, up 9.4% from the previous year.
Separately, KIP REIT has entered into a conditional agreement to acquire Setapak Central, a shopping mall in Kuala Lumpur, for RM435mil.
The asset, which has a 99.9% occupancy rate and net lettable area of 514,777 sq ft, is expected to expand the group’s portfolio by 15.6% and deliver a yield of 7.2%.
Chief executive officer Valerie Ong said: “Our performance this quarter reflects the positive outcomes of a focused rental and retail strategy, disciplined cost management, and successful integration of our recent acquisitions.”
She added that the proposed acquisition “marks another important step in KIP REIT’s growth journey,” as the group focuses on “quality growth... to deliver sustainable growth in distribution per unit or DPU.”
Upon completion, the acquisition is expected to lift assets under management to RM2.1bil and support long-term income growth for unitholders.
