KIP REAL ESTATE INVESTMENT TRUST

KLSE (MYR): KIPREIT (5280)

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Last Price

0.925

Today's Change

+0.005 (0.54%)

Day's Change

0.92 - 0.925

Trading Volume

260,700

Details of Changes
Securities After Change
Transactions
Ann. Date Name Details of Changes Securities After Changes
Date Type No. of Shares Price Direct (%) Indirect (%) Total (%)
Discussions
3 people like this. Showing 50 of 746 comments

Justmeme

Then this year yield should to above 7% this year as in July the last one before book closing usually is higher.

2024-01-30 10:09

Justmeme

smartly,.... this usually I do not understand the term.

Second Income Distribution of 1.55 sen per unit for the 2nd Quarter of 2024
(from 1 October 2023 to 31 December 2023) comprising:- (1) 0.85 sen per unit is
taxable; (2) 0.65 sen per unit is non-taxable; and (3) 0.05 sen per unit is tax
exempt.

Does it mean on the 1.55 cts declared, the 0.85 cts are taxable at 10 %, right and the 0.65 % is non taxable means no tax and the final 0.05cts is tax exempted... what it really means ???. I am not sure about this last 2 term. Can someone pls help explained and clarify on this ?

2024-01-30 10:36

Pinky

To normal/layman investor like us

Taxable = Deduct 10% withholding tax
Exempt = 0% tax
Non-taxable = 0% tax

2024-01-30 10:47

Pinky

Don't need to overthink or over-analyse

2024-01-30 10:48

smartly

about the tax...pinky is correct.

2024-01-30 11:22

smartly

overall the dividend yield for now is > 7%. better than putting in fd

2024-01-30 11:23

Justmeme

Oh... Ok, many thanks. Means effective base on the tax, the tax would be 5% of 1.55 cts since about half is not taxable

2024-01-30 15:32

smartly

all give tp > RM1 but since listing, never before it touches above RM1.
this stock is only good for keeping for its dividends.
those looking for higher interest yield than epf, not a bad idea to park your money here

2024-02-02 16:47

Justmeme

They have bought the 3 industrial lots and Kinta City which are damn good investment for KIPREITS. Makes KIP not so reliance to just shpping mall and a bit diversify. If they keep on this trend it will be good in the future.

2024-02-07 16:34

smartly

Q2FY2024 - 10.6m
Q2FY2023 - 8.1m
so the 3 industrial properties have contributed approximately (10.6 - 8.1) 2.5m per Q
yearly net profit will have additional 10m, this translate to 0.16sen additional DPU yearly

2024-02-07 17:05

smartly

say 0.16sen net distributable is around 0.144sen
every Q will have additional 0.036sen DPU

2024-02-07 17:11

smartly

KIPMall Kota Warisan not in the picture yet, only to Start Contributing in 2HFY24

2024-02-07 17:13

Value Investor Coo1eo

@smartly - did you factor in the dilution after the 3 industrial properties in your DPU calculation?

2024-02-07 22:44

Value Investor Coo1eo

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

Justmeme

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

iscmob

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

Trinity

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

Value Investor Coo1eo

Sadly....the DPU will not grow.

2024-05-28 10:33

4ever5

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

Pinky

@Value Investor Coo1eo

What are you talking about? See here:

https://klse.i3investor.com/web/stock/entitlement/5280

2024-05-30 23:47

TaiMeiLi

Will Eddie Ong collect again ?

2024-07-02 16:11

zzprozaz

Post removed.Why?

2024-07-10 08:41

Value Investor Coo1eo

@Pinky dilution.

2024-07-10 10:00

Justmeme

1.72 cts dividend expected by end of the month announcement.

2 months ago

smartly

high chance 1.8

2 months ago

Value Investor Coo1eo

Nothing less than 1.99

2 months ago

Justmeme

Tomorrow will know

2 months ago

tauruslau

2.0

2 months ago

foreverchung

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!

2 months ago

Justmeme

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

2 months ago

Justmeme

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.

2 months ago

foreverchung

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.

2 months ago

Justmeme

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

2 months ago

iscmob

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.

1 month ago

Justmeme

Never expect they issue new shares for the purchase at such low prices... I will certainly question the management at the next meeting

1 month ago

Value Investor Coo1eo

You can ask, but they will do what they want. lol.

1 month ago

Trinity

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.

1 month ago

Value Investor Coo1eo

Placement to raise funds. Here you don’t need to top up. Another option is rights…where you top up cash.

1 month ago

Justmeme

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.

1 month ago

iscmob

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

3 weeks ago

Justmeme

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 ?

2 weeks ago

Sunshine88

Private placement is unfair . Objection to private placement ! It must be rights issue . Why there is no law to protect retail investors ?

1 week ago

iscmob

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 week ago

Value Investor Coo1eo

@income what is this you posted? what is the relevance with KIP REIT????

1 week ago

Justmeme

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.

3 days ago

Justmeme

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

3 days ago

Justmeme

Would be interesting to know the coming Q dividend due to be announce this month end.

3 days ago

iscmob

sigh ... we only can decide to buy or to sell.
anyway, price now is rising ...

2 days ago

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