Latest news with #KIP-REIT
The Star
4 days ago
- Business
- The Star
KIP-REIT has potential to offer 8% yield
PETALING JAYA: KIP Real Estate Investment Trust (KIP-REIT) presents a 'compelling investment opportunity', given its attractive distribution yield and solid financial footing. According to Apex Securities, KIP-REIT offers a yield of exceeding 8% for the financial years of 2026 to 2028, well above the peer average of 5.6% and the Employees Provident Fund's 6.3% in 2025. The investment trust is also supported by a diversified asset base, its position as a one-stop community-centric mall curator serving the mass market, high 90% distribution policy, and strong balance sheet. As of end-June 2025, KIP-REIT's portfolio comprised 10 retail malls and four industrial assets valued at RM1.5bil with a combined net lettable area of 2.6 million sq ft and 1,178 tenancies. The portfolio maintained a robust average occupancy rate of 97.8%, underpinned by strong tenant relationships and footfall. A total of four retail and three industrial assets proposed acquisitions have yet to be finalised. Apex Securities initiated coverage on KIP-REIT with a 'buy' rating, with a target price of RM1.07 per unit based on a 7% target distribution yield. The target yield represented a 1.7-percentage-point premium over the peer average of 5.3%, which Apex Securities viewed as reasonable. The premium reflected compensation for KIP-REIT's lower asset quality and exposure to non-prime retail segments, which carried higher risk but offered more attractive returns, it said. According to Apex Securities, KIP-REIT is largely shielded for the recent expansion of the sales and service tax. Effective since July 1, 2025, an 8% service tax on rental and leasing services had been applied to commercial rentals with an annual turnover exceeding RM1mil. 'The tax is billed to tenants and remitted to Customs, so it will not directly impact KIP-REIT's earnings,' it added.
The Star
03-08-2025
- Business
- The Star
KIP-REIT poised for robust rental reversions
PETALING JAYA: Analysts have raised their earnings estimates for KIP Real Estate Investment Trust (KIP-REIT) based on the possibility of stronger rental revision and incremental contributions from new assets. TA Research raised its earnings projections for the REIT's financial year 2026 ending June 30 (FY26) and FY27 by 3% and 7%, respectively, The research house said in a report to clients that it came away from KIP-REIT's FY25 results briefing last week feeling 'upbeat' on the REIT's near-term prospects. It said management remained committed to scaling up KIP-REIT's portfolio through active asset enhancement, strategic partnerships, and accretive acquisitions. At KIPMall Tampoi in Johor, enhancement works have commenced and are targeted for completion by next February, it noted. The upgrades will add 10,000 sq ft of net lettable area and include infrastructure improvements, enhanced food and beverage offerings, digital integration, and sustainability features, all aimed at boosting the mall's footfall and unlocking rental upside. Separately, in March, KIP-REIT entered into a memorandum of understanding with Aeon Co (M) Bhd for the expansion of AEON Mall Kinta City in Perak. As part of the deal, AEON has renewed its lease for the existing space and will master-lease the upcoming extension, reaffirming its long-term commitment to the location, TA Research said, adding that both parties are in the final stages of negotiation, with construction expected to commence soon and completion targeted for 2027. On the acquisition front, the research house reported that progress remains on track for three industrial assets valued at RM75.7mil. The assets in Sarawak and Johor are expected to be completed soon, while a Klang property is scheduled for completion by year-end.
The Star
24-07-2025
- Business
- The Star
KIP-REIT's net profit more than doubles to RM115mil
KIP-REIT CEO Valerie Ong. KUALA LUMPUR: KIP Real Estate Investment Trust (KIP-REIT) recorded a net profit of RM115.14mil for the financial year ended June 30, 2025 (FY25), more than doubled the RM47.31mil posted a year earlier, supported by stronger rental income, portfolio expansion and fair value gains. Revenue for the year rose to RM136.13mil from RM102.16mil previously, driven by stable contributions from its KIPMalls, D'Pulze Shopping Centre, TF Value-Mart and industrial assets, it said in a filing. For the fourth quarter of FY25, KIP-REIT posted a higher net profit of RM79.25mil, up from RM16.05mil a year earlier. This was mainly due to stronger lease income from an improved tenant mix, higher occupancy and contributions from newly acquired assets, KIP-REIT said in the filing. Quarterly revenue rose to RM39.89mil from RM32.64mil, supported by steady rental income across the trust's portfolio, particularly from the Cheras Jaya property. In a separate statement, KIP-REIT said it recorded a revaluation surplus of RM61.8mil from its annual fair value assessment of 14 investment properties as at June 30, 2025, conducted by Rahim & Co in accordance with the Securities Commission's Listed REIT Guidelines. 'The gain reflects appreciation across the portfolio, notable from newly acquired assets such as D'Pulze Shopping Centre, TF Value-Mart and the Cheras Jaya industrial property, as well as from matured KIPMalls including Kota Warisan, Masai and Tampoi, which recorded double-digit fair value gains,' it said. Chief executive officer Valerie Ong said the FY25 performance reflected the group's growth strategy and focus on stable, long-term returns. — Bernama
The Star
22-07-2025
- Business
- The Star
KIP-REIT gets nod for retail property buy
KUALA LUMPUR: KIP Real Estate Investment Trust (KIP-REIT) unit holders approved at its EGM yesterday the group's expansion plan to acquire four retail properties in Kuantan and Selangor for RM118mil and a concurrent private placement to raise RM132mil. It stated that the four newly approved assets, KIPMall Desa Coalfields, Lotus's Indera Mahkota, and two commercial buildings within an integrated development in Kuantan, are projected to contribute a combined revenue of RM11.3mil and net property income of RM8mil in the first full year of operation. 'This is equivalent to 11.7% and 11.6% of the group's nine-month financial year 2025 revenue of RM96.2mil and net property income of RM68.8mil, respectively, highlighting the strong earnings accretion potential of the expansion,' it said.
