Recently, KIP Real Estate Investment Trust (KIPREIT, 5280), owning retail and industrial properties, announced outstanding performance, showcasing a consistent growth trend in revenue. Without delay, let's delve into the latest performance of KIPREIT.

Revenue Comparison (YoY +12.46%, QoQ +8.59%)

For the third quarter ending March 31, the company recorded approximately RM24.54 million in revenue, marking an increase of about 12.46% from the same period last year, primarily attributed to the acquisition of the retail property, KIPMall Kota Warisan, completed in February this year, and higher occupancy rates in retail malls.

With the recent acquisition of KIPMall Kota Warisan, KIPREIT now owns a total of 8 retail properties, while the number of industrial properties held remains unchanged at 3.

Out of the RM25.54 million revenue generated, approximately RM23.26 million came from rental income of retail properties, witnessing an increase of around 13.28% year-on-year. The remaining RM1.28 million came from rental income of industrial properties.

Rental income from retail properties primarily stems from three regions: the northern region (including AEON Mall Kinta City), the central region (including KIPMall Senawang, KIPMall Bangi, KIPMall Melaka, and KIPMall Kota Warisan), and the southern region (including KIPMall Masai, KIPMall Kota Tinggi, and KIPMall Tampoi).

For this quarter, the malls in the northern region, central region, and southern region contributed approximately RM10.73 million, RM8.05 million, and RM4.48 million in revenue, respectively.

Similarly, benefiting from newly acquired KIPMall Kota Warisan and the increased occupancy rates in retail malls, the company's revenue increased by approximately RM1.94 million or 8.59% quarter-on-quarter.

Net Profit Comparison (YoY -2.82%, QoQ -3.92%)

Underpinned by strong rental income, KIPREIT achieved a net profit of approximately RM10.23 million for the quarter. However, compared to the same period last year, the net profit declined by about 2.82%, primarily due to one-time expenses related to the acquisition of KIPMall Kota Warisan, amounting to approximately RM1.73 million.

Similarly, due to these expenses, the net profit decreased by approximately RM0.42 million or 3.92% quarter-on-quarter. It's worth noting that excluding these one-time expenses, KIPREIT's net profit actually showed an growth trend.

On the other hand, the company's total net property income increased by approximately 10.14% year-on-year, to around RM18.09 million.

As always, KIPREIT announced a distribution of RM0.0160 per unit of dividend (with RM0.0124 taxable and the remaining RM0.0036 non-taxable); the ex-dividend date is May 8, with payment scheduled for May 28, 2024, to unitholders.

Outlook

The company will continue to enhance leasing and operational efficiency and execute asset enhancement plans. It is reported that the company plans to expand operations and increase total assets under management (AUM) to RM2.00 billion within the next three years. Therefore, KIPREIT will actively explore income-generating opportunities in commercial properties, including industrial facilities, logistic facilities, and warehouse facilities.

In conclusion, the management maintains an optimistic outlook for KIPREIT's future. So, readers, what are your thoughts on KIPREIT, currently trading at a P/E ratio of approximately 8.67 times?

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Disclaimer: The above is purely for educational purposes and reflects personal opinions. It does not constitute any buying or selling recommendations.

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