KIP REIT posts 19.6% revenue growth in 1QFY27


KIP Real Estate Investment Trust chief executive officer Valerie Ong.

PETALING JAYA: KIP Real Estate Investment Trust (KIP REIT) recorded revenue of RM48.8mil for the first quarter ended Sept 3, (1QFY2027), an increase of 19.6% year-on-year (y-o-y) from RM40.8mil.

The growth was supported by stronger performance across its KIPMalls and contributions from properties acquired as part of its portfolio expansion, it said in a statement.

Net property income (NPI) increased 17.6% y-o-y to RM35mil from RM29.7mil, reflecting the higher revenue generated by its retail and industrial assets.

Profit after tax remained broadly stable at RM17.3mil, while distributable income stood at RM17.6mil.

“The Central region generated revenue of RM23.1mil, up 15.3% y-o-y, while the Southern region recorded a 7.5% increase to RM14.7 million.

“Revenue from the Northern region grew 33.9% to RM6.6mil, while the East Coast region contributed RM1.1mil compared with RM0.1mil in the corresponding quarter.”

The retail segment remained the group’s largest contributor, accounting for 93.3% of total revenue. Retail revenue rose 17.5% y-o-y to RM45.5mil, while retail NPI increased 14.5% to RM31.7mil.

Growth was recorded across all four geographical regions, supported by improved operating performance and contributions from acquired properties.

The industrial segment also delivered stronger performance, with revenue increasing 59.8% y-o-y to RM3.3mil and NPI rising 59.8% to RM3.3mil.

The segment accounted for 6.7% of total revenue, providing a growing contribution alongside the group’s retail portfolio.

An advance income distribution of 0.82 sen per unit, covering the period from July 1, 2026 to Aug 24, 2026, was paid on Sept 24, 2026.

“The manager intends to distribute at least 90% of KIP REIT’s distributable income for the financial year ending June 30, 2027,” it said.

KIP REIT chief executive officer Valerie Ong said the trust's continued revenue and NPI growth in the first quarter of FY27 reflected the strength of its portfolio and growth strategy.

“With assets under management now at approximately RM2.2bil, our next priority is to maximise the earnings potential of our enlarged portfolio and translate this growth into sustainable long-term value for our unitholders,” she said.

She added that KIPMall Setapak was expected to contribute its first full quarter of income in the second quarter of FY2027, following the completion of its acquisition on Sept 30, 2026.

“We expect this contribution to further strengthen our recurring income base and support distributable income growth,” she said.

Ong said KIP REIT would continue to focus on proactive leasing, optimising its tenant mix, targeted asset enhancements and operational efficiencies to drive sustainable NPI growth, alongside prudent capital management to support distributions to unitholders.

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