KIP REIT 2Q net property income up 5%, proposes 1.45 sen income distribution

• The southern region remained as the highest revenue contributor to KIP REIT, with the three malls located in the region reporting a gross revenue of RM9.9 million or 49.2% of the total revenue.

KUALA LUMPUR (Jan 17): KIP Real Estate Investment Trust’s (KIP REIT) net property income rose 5.35% to  RM15.15 million for the second quarter ended Dec 31, 2022 (2QFY2023), from RM14.38 million a year earlier, contributed by 18 days of lease income from its three newly acquired industrial properties in Pulau Indah.

Revenue improved 9.1% to RM20.19 million from RM18.51 million, mainly attributed to an increase in occupancy rate supported by mini anchor Jalan Jalan Japan commencing operations in Tampoi and Melaka.

The southern region remained as the highest revenue contributor to KIP REIT, with the three malls located in the region reporting a gross revenue of RM9.9 million or 49.2% of the total revenue.

The central region’s three malls recorded revenue of RM5.5 million or 27.2% of the total revenue, while the sole mall in the northern region clocked in RM4.5 million or 22.4% of the total revenue.

KIP REIT has proposed a second income distribution of 1.45 sen per unit for FY2023, to be paid on Feb 21.

The overall income available for distribution for the quarter remained steady at RM8.4 million, the REIT said in a statement.

Meanwhile, net property income for the first six months of FY2023 rose 5% to RM29.5 million from RM28.05 million for the previous corresponding period. The higher net property income was due to higher revenue at a lower positive variance due to overall higher property expenses such as utilities, reimbursement cost and upkeep of building, said KIP REIT.

Six-month revenue rose 10.9% to RM39.53 million from RM35.64 million due to the lower base revenue from July to September 2022, on the back of the restriction on activities from the full movement control order.

KIP REIT has maintained an optimistic outlook for the remainder of FY2023 with expected growth in the retail segment and community centric portfolio which provides essential items.

“In addition, with the completion of the proposed acquisitions of the three industrial properties in December 2022, there will be incremental revenue to KIP REIT for the remaining quarters in FY2023.

“Nonetheless, the manager remains cautious of the domestic and global uncertainties which may pose a challenge and add to the country’s downside risks,” said the REIT.

KIP REIT’s share price closed unchanged at 90 sen on Tuesday, giving a market capitalisation of RM521.07 million.