KIP REIT’s 3Q net property income up 10.1%, to double AUM in three years

• A distribution per unit of 1.6 sen was declared for 3QFY2024, payable on May 28, 2024.

KUALA LUMPUR (April 23): KIP Real Estate Investment Trust (KIP REIT), a trust which mainly manages retail and industrial properties, said its net property income (NPI) for the third quarter rose 10.1% from a year ago, mainly due to stronger performance from its retail properties.

NPI for the third quarter ended March 31, 2024 (3QFY2024) rose to RM18.1 million from RM16.43 million previously, KIP REIT said in a bourse filing on Tuesday. Revenue rose 12.5% year-on-year to RM24.55 million from RM21.82 million, primarily on the back of higher contributions from the group’s four malls in the central region.

A distribution per unit of 1.6 sen was declared for 3QFY2024, payable on May 28, 2024.

Looking ahead, KIP REIT chief executive officer (CEO) Valerie Ong Pui Shan said the group maintains a positive outlook buoyed by its portfolio’s strong performance, coupled with strategic initiatives to enhance leasing and operational efficiencies, as well as asset enhancement initiatives in place.

“We aim to scale up our operations and increase our total assets under management (AUM) to RM2 billion within the next three years, and therefore, we will continue our efforts in exploring opportunities on income-producing real estate assets for commercial properties, including industrial facilities, logistic facilities and warehouse facilities,” she added.

As at end-March 2024, KIP REIT’s AUM stood at RM1.06 billion, comprising 11 properties — three industrial properties in Pulau Indah; seven KIPMalls in Bangi, Tampoi, Kota Tinggi, Masai, Senawang and Melaka; and the AEON Mall Kinta City in Ipoh.

The portfolio’s average occupancy rate stood at 94%.

Looking to the cumulative nine months ended March 31, 2024 (9MFY2024), KIP REIT’s NPI climbed 11.9% to RM51.39 million from RM45.92 million a year earlier, while revenue rose 13.3% to RM69.52 million, as compared to RM61.36 million previously.

Shares in KIP REIT closed unchanged at 90 sen on Tuesday, giving the investment trust a market capitalisation of RM556.77 million.

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