KIP REAL ESTATE INVESTMENT TRUST
KLSE (MYR): KIPREIT (5280)
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Last Price
0.91
Today's Change
-0.005 (0.55%)
Day's Change
0.91 - 0.92
Trading Volume
511,100
IPO Info
Offer Period
Opening
2016-12-30
Closing
2016-12-30
Time Table
Allotment Date
2017-02-03
Listing Date
2017-02-06
Price
Issue Price
1.00
Units
505,300,000
Share Capital
0.000
No of Shares
Public Issue
13,500,000
Offer for Sale
-
Private Placement
220,650,000
Issuing House
MIH - 581
ISIN Code
MYL5280TO001
Prospectus:
INITIAL PUBLIC OFFERING OF 234,150,000 OFFER UNITS IN KIP REIT ("UNITS") COMPRISING THE ISSUANCE OF: (I) 220,650,000 OFFER UNITS MADE AVAILABLE FOR APPLICATION BY MALAYSIAN INSTITUTIONAL INVESTORS AND SELECTED INVESTORS, INCLUDING BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY, AT THE INSTITUTIONAL PRICE BEING THE PRICE PER UNIT PAYABLE BY THE INVESTORS WHICH WILL BE DETERMINED BY WAY OF BOOKBUILDING ("INSTITUTIONAL PRICE"); AND (II) 13,500,000 OFFER UNITS MADE AVAILABLE FOR APPLICATION BY THE MALAYSIAN PUBLIC, THE ELIGIBLE DIRECTORS AND EMPLOYEES OF THE MANAGER, THE VENDORS (AS DEFINED IN THE PROSPECTUS) AND ELIGIBLE ASSOCIATE COMPANIES OF THE PROMOTERS (AS DEFINED IN THE PROSPECTUS) AT THE RETAIL PRICE OF RM1.00 PER UNIT PAYABLE BY APPLICANTS ("RETAIL PRICE"), SUBJECT TO THE CLAWBACK AND REALLOCATION PROVISION IN CONNECTION WITH THE LISTING OF AND QUOTATION FOR 505,300,000 UNITS IN KIP REIT ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD. THE RETAIL PRICE IS PAYABLE IN FULL UPON APPLICATION AND SUBJECT TO REFUND OF THE DIFFERENCE, IN THE EVENT THAT THE FINAL RETAIL PRICE IS LESS THAN THE RETAIL PRICE. THE FINAL RETAIL PRICE WILL BE EQUAL TO THE LOWER OF: (I) THE RETAIL PRICE OF RM1.00 PER UNIT; AND (II) THE INSTITUTIONAL PRICE.
KIP REIT Prospectus - Notice of Electronic Prospectus to Page 150 (Part 1).pdf
KIP REIT Prospectus - Page 151 to Page A-57 (Part 2).pdf
Discussions
3 people like this. Showing 50 of 756 comments
KIPMall Kota Warisan not in the picture yet, only to Start Contributing in 2HFY24
2024-02-07 17:13
@smartly - did you factor in the dilution after the 3 industrial properties in your DPU calculation?
2024-02-07 22:44
Haiyan….@smartly - did you understand my question? You calculation claims on industrial pro wil contribute 0.16 (nett 0.144) annually. Does this consider the increase in number of units following the placement and issue of new shares in lieu of the industrial property acquisition
2024-02-09 11:11
does it matter ????... some results will be due out this week anyway. But expect another 1.55 cts announcement. Next Q will be the interesting one
2024-04-22 12:09
https://www.thestar.com.my/business/business-news/2024/05/27/kip-reit-to-acquire-dpulze-shopping-centre-for-rm320mil
"The exercise will be funded by a combination of bank borrowings and proceeds to be raised from a proposed placement of up to 180 million new shares in KIP REIT to raise up to RM146.70 million, and a proposed placement of up to 15 million units to major shareholder Datuk Ong Kook Liong, and/or persons connected with him.
"The actual issue price for the placement units will be determined later and may be higher or lower than the illustrative issue price of 81.5 sen per unit," it added."
What will be the impact to the current share price?
2024-05-27 17:03
Placements (assuming this is private) at discounted share price is to attract institutional investors, not really a fan of it. Basically means dilution and retail investors always lose out. Short term share price should drop a bit and dividend distribution as well until DPulze starts contributing to the NPI. Likely to expect something similar to 2022 when they acquired the 3 industrial properties, dividend dropped to 6.2 sen/unit for FY23. But KIP's strength has always been giving out consistent dividends. Safe to still expect a after WHT tax of 6% DY. This counter is always about stability. Bought in 2022 and share price is still ~0.89
2024-05-27 23:21
Hi 5 to Trinity, hahah i have been holding kipreit since 2022 to harvest dividend portfolio. Yes its a stable stock.
the price is always around ~0.89. its bitter sweet
2024-05-30 22:37
@Value Investor Coo1eo
What are you talking about? See here:
https://klse.i3investor.com/web/stock/entitlement/5280
2024-05-30 23:47
1.96, good QR!
With incoming dilution, would like to see whether the acquisition of DPulze is accepted warmly by the market. Kudos to Valarie and team!
2024-07-25 18:22
DPulze have 100% occupancy rate and current yield is 7% now. Expected to increase by 5% yearly upon expiry of tenancy agreement. So certainly it is a good buy
2024-07-25 19:56
If can post such increase in profit, coming Q, I would expect them to up their Q dividend too from the 1.55 to 1.6 cts range.
2024-07-26 10:28
DPulze's revenue contribution will only be taken into account after it is fully completed which I anticipate should be before FY2024 ends, so we will see DPulze's contribution coming in from FY2025 Q1 onwards. Clean execution by the team too.
2024-07-26 18:36
Wonder why last few days the major shareholders are disposing the shares of this company. Could it be that they get it at lower prices by the rights issue for the purchase of the D Cruz and now disposing off the excessive shares and make the money. If that is the case not fair to retail shareholders.
They should have equal rights to get the rights issue at 80 cts, is it ? and nost just issue to institutional investors or main shareholders
2024-08-06 12:04
Currently, there are 618M+ shares at RM0.89.
Part of the new fund raise to purchase DPulze is new 180M shares that could be higher or lower than RM0.815. And another 15M shares placement to Dt Ong.
https://theedgemalaysia.com/node/713071
I'm not expert but I believe the share value will be diluted somewhat.
2 months ago
Never expect they issue new shares for the purchase at such low prices... I will certainly question the management at the next meeting
2 months ago
Its definitely diluting further, last I roughly calculated its 20-30% dilution. Hence you should expect only 6% dividend yield in FY2025 from the enlarged no. of shares despite dividend distribution increasing from more NPI. One may argue the drop in DY% is temporary, but if the REIT continues to expand via more private placements (which they have been doing since 2022), we should almost never expect a growth of DPU (i.e. share price to stay constant). Private placements only benefit the institutions, never small kacang like us. If they sincerely care about us retailers then a DRP should be proposed soon, but ive never seen DRP in MY REITs before.
Anyhow. ~6% is a somewhat good return for a very stable (for now) REIT like KIP REIT, which attracts risk-averse investors. You basically sleep well every night without all the clown fiestas that you can see in YTLP i3 forum. They know that and hence is why I believe private placements and share dilution will still continue in future. I do hope I'm wrong, we'll see.
2 months ago
Placement to raise funds. Here you don’t need to top up. Another option is rights…where you top up cash.
2 months ago
If the rights issue are placed at the same value as their placement value or even 5 to 10% % higher most investor will buy it up. Then only the untaken up ones can be placed to institutional investors which are typically long term holders.
2 months ago
In the circular that's available today:
2.2.1 Details of the Proposed Placement
...
The maximum number of Placement Units to be issued for the Proposed Placement was
determined based on an illustrative issue price of RM0.815 per Placement Unit, which would
result in the issuance of a maximum number of 180,000,000 Placement Units. Notwithstanding
this, subject to the maximum number of 180,000,000 Placement Units, the actual issue price
for the Placement Unit can only be determined later and may be higher or lower than the
illustrative issue price of RM0.815 per Placement Unit.
2.2.2 Basis of determining the issue price of the Placement Units
...
In any event, the Placement Units will be issued at not more than 10% discount to the 5-day
VWAP of Units immediately before the price fixing date to be announced on a later date.
2.2.6 Utilisation of proceeds
...
For illustrative purposes only, assuming only 15,000,000 Placement Units are placed out to
Dato’ Ong Kook Liong and Persons Connected at an illustrative issue price of RM0.815 per
Placement Unit, the gearing ratio of KIP REIT will increase from 37.27% (as at 30 June 2024)
to 48.20% after the Proposed Acquisition, which is still below the prescribed 50.0% gearing
limit.
7.1 Unitholders’ capital
The Proposed Acquisition will not have any effect on the unitholders’ capital as the Proposed
Acquisition does not involve any issuance of new Units by KIP REIT.
The pro forma effect of the Proposed Placement (including the Proposed Placement to Dato’
Ong Kook Liong and Persons Connected) and on the unitholders’ capital is shown below:
No. of Units; RM
Existing as at the LPD 618,630,000; RM583,626,000
To be issued pursuant to the Proposed Placement 180,000000; RM145,020,000
Enlarged unitholders’ capital 798,630,000; RM728,646,000
7.4 Earnings and distributable income
The Manager believes that following the completion of the Proposals, the Proposed Acquisition
is expected to contribute positively to the earnings and distributable income of KIP REIT for the
future financial years.
The issuance of new Units pursuant to the Proposed Placement will initially dilute the EPU and
DPU due to the enlarged number of Units in circulation. However, after taking into consideration
the additional estimated net property income of the Property following the completion of the
Proposed Acquisition, the Manager believes that the Proposed Acquisition is expected to
contribute positively to the earnings and distributable income of KIP REIT for the future financial
years.
11. TENTATIVE TIMEFRAME FOR IMPLEMENTATION
Barring any unforeseen circumstances and subject to all requisite approvals being obtained,
the Proposals are expected to be completed in the 4
th quarter of 2024.
25
The tentative timetable for the implementation is as follows:
Meeting, 2 October 2024
Fulfilment of all conditions precedent, Early October 2024
Announcement of the price-fixing date for the Placement Units, Mid November 2024
• Issuance and allotment of the Placement Units
• Listing of and quotation of the Placement Units, Early December 2024
1 month ago
This deal on private placement is not fair to all the other shareholders which have been supporting the company all along.
Not withstanding this, subject to the maximum number of 180,000,000 Placement Units, the actual issue price for the Placement Unit can only be determined later and may be higher or lower than the illustrative issue price of RM0.815 per Placement Unit.
Just imagine 180 mil units at 0.815 cents. Say 10 cts per share difference, that is a cool 18 million ringgit immediate gain. Why not offer this to the rest of shareholders as right issue ?. If no takers, I rest my case, if not why not ?
1 month ago
Private placement is unfair . Objection to private placement ! It must be rights issue . Why there is no law to protect retail investors ?
1 month ago
With this statement in the circular, "The Proposed Acquisition will not have any effect on the unitholders’ capital as the Proposed Acquisition does not involve any issuance of new Units by KIP REIT. ..," does that mean the current share price won't be diluted?
1 month ago
@income what is this you posted? what is the relevance with KIP REIT????
1 month ago
Iscmob... true, the current share prices will not be diluted but it is paid for using new KIPS private placement to raise the money for the purchase. Say now Decruz cost 600 mil, X shares will be issued at a certain price to help pay for the purchase price. Rest could be borrowing as their gearing will show later of any increase. watch out for it. I prefer they borrow than do private placement and then later raise cash to reduce the borrowing through right issue to the share holders. This should generate much more interest on this stock.
1 month ago
Now this stock is not that hot as even the margin financing do not give a full value for the stock price. Just 60 or 70 % only. So you cannot finance 1 for 1. Sad
1 month ago
Would be interesting to know the coming Q dividend due to be announce this month end.
1 month ago
DPU of 1.52c announced
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=151962&name=EA_GA_ATTACHMENTS
2 weeks ago
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=230106&name=EA_FR_ATTACHMENTS
"Quarterly and Year to date Results
KIP REIT recorded gross revenue of RM26.7 million in Q1FY25, as compared to RM22.4 million in Q1FY24, a growth of 19.4%. The increase in gross revenue split into 2
segment which is 19.1% from the Retail and 24.7% from Industrial.
The investment properties from retail and industrial segment contributed 94.0% and 6.0% of the KIP REIT total revenue respectively, whilst Southern, Central and Northern
region contributed 42.5%, 39.1% and 18.4% of the KIP REIT total revenue from retail segment respectively.
The net property income ("NPI") margin for the current quarter stands at 73.7%, is consistent with the 73.8% recorded in Q1FY24
KIP REIT's realised profit before tax for Q1FY25 saw a slight decrease of 3% compared to the corresponding quarter of the preceding year. This slight decrease is primarily
attributed to an increase in manager's management fee and borrowing cost."
2 weeks ago
Much higher manager's management fee, a whoping 80+%, I wonder what is the justification for that. If increase in the number of management personnel I would understand. But if its purely increment in remuneration, then will have to check back with past increment as well as recent performance.
2 weeks ago
cont. from above report:
"PROSPECTS
The Manager holds a favorable outlook, considering the positive performance of KIP REIT's existing property portfolio and their strategic endeavors to actively enhance leasing
and operational strategies while pursuing investments of high quality. As a result, the manager anticipates the ability to sustain a stable performance throughout fiscal year 2025.
The Manager will continue to manage the existing portfolio and exercise prudent capital management in order to deliver sustainable DPU to Unitholders. The Manager will also
continue to evaluate growth opportunities in its existing and new asset classes of retail and industrial assets."
2 weeks ago
page 1 from above report shows:
- property op expenses y-o-y increase of 20+%
- manager's mgm and trustee related fee y-o-y increase of 47+%
2 weeks ago
Hope after acquiring Hektar they have not learn their bad management habit n spiral the company down n down.
2 weeks ago
https://www.thestar.com.my/business/business-news/2024/10/23/positive-outlook-for-kip-reit-on-sound-acquisitions
" ... “We are optimistic about these acquisitions, as they align with KIP-REIT’s strategy to expand operations and increase total assets under management from the current RM1.06bil to RM2bil within the next three years,” the research firm noted.
... The increase in borrowing costs was primarily due to loan drawdowns for deposit payments related to the aforementioned acquisitions.
The rise in management fees was driven by higher charges from service providers, trustees and consultants, along with the additional manpower requirements for acquisition activities, which also contributed to the increase in operating costs.
... TA Research made no changes to the company’s earnings forecasts.
Consequently, the research house has maintained a “buy” recommendation on KIP-REIT with an unchanged target price of RM1.15 a share.
... KIP-REIT’s revenue for 1Q25 rose by 19.4% y-o-y to RM26.7mil, driven by a 19% increase in the retail segment, which accounted for 94% of total revenue.
This growth was primarily attributed to higher occupancy rates across retail properties.
The industrial segment also showed strong performance, with revenue increasing by 23.1% y-o-y, further contributing to its top line. "
2 weeks ago
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smartly
say 0.16sen net distributable is around 0.144sen
every Q will have additional 0.036sen DPU
2024-02-07 17:11