KIP REIT's 3Q net property income up 13.3%, declares 1.55 sen income distribution

KUALA LUMPUR (April 19): KIP Real Estate Investment Trust's (REIT) net property income for the third quarter ended March 31, 2023 (3QFY2023) grew 13.3% to RM16.4 million, up from RM14.5 million a year earlier, on higher revenue.

Revenue rose 15.9% to RM21.8 million from RM18.8 million, driven by lease income from the three newly acquired industrial properties and higher occupancy rates recorded from its retail segment, the REIT said in a stock exchange filing.

Net profit rose 15.35% to RM10.53 million from RM9.12 million in 3QFY2022.

KIP REIT proposed a third interim income distribution of 1.55 sen per unit, totalling RM9.4 million.

The REIT said the southern region remained as the highest revenue contributor, with the three malls located in the region reporting a gross revenue of RM10.3 million or 47% of the total revenue.

The central region’s three malls recorded revenue of RM5.8 million or 26.6%, while its sole mall in the northern region clocked in RM4.5 million or 20.5% of the total revenue.

For the first nine months of FY2023, total revenue was RM61.4 million, up 12.6% against the RM54.47 million in the previous corresponding period, mainly due to low base revenue last year due to restrictions on activities as a result of the lockdown.

Nine-month net profit saw a meagre increase of 3.4% to RM27.45 million from RM26.54 million previously.

KIP REIT chief executive officer Valerie Ong Pui Shan said the group will close off the current financial year on a strong note.

“KIP REIT encountered an increase in its electricity tariff billing for this quarter. However, with our increasing focus on environmental, social and governance (ESG) initiatives, we managed to mitigate the impact on our financials through our solar panels which we have installed in all our malls, save for the master leased properties. Moving forward, we are looking to further integrate ESG efforts into our business,” she said in a statement.

On the acquisition front, Ong said the REIT is aggressively looking for opportunities in both the retail and industrial space in line with its investment policy.

“We are cognisant that the industrial sector continues to perform well and we are hopeful that we are able to expand our industrial asset base together with securing long-term tenancies with stable returns. Overall, we are focused on delivering value to our unitholders,” she said.

KIP REIT units fell 0.55% or half sen to 90.5 sen on Wednesday (April 19), valuing the REIT at RM545.74 million.