KIP REIT eyes third-party properties
26 Jan 2018 16:32
Kip Mart Masai is one of the properties under the REIT
KIP Real Estate Investment Trust (KIP REIT), a hybrid community-centric retail REIT, is assessing offers to acquire third-party properties to grow the fund as it continues to post positive results.
“Barring any unforeseen circumstances, we expect the performance of the fund to continue improving as we constantly undertake asset enhancement initiatives to ensure that the properties will become more appealing to our tenants,” says KIP REIT Management Sdn Bhd managing director Datuk Chew Lak Seong.
Since its listing on Bursa Malaysia on Feb 6 last year, KIP REIT has declared a total distribution of RM31.16 mil, or 6.17 sen per unit, for the 11-month period. This translates to an annualised distribution yield of 8%.
The REIT’s portfolio comprises five KIP Mart properties in Tampoi, Kota Tinggi, Masai, Senawang and Melaka, and a KIP Mall in Bangi offering a total net lettable area of over 936,000 sq ft, with an asset value of RM611.2 mil.
The REIT announced its Q2FY18 results, which showed a higher revenue of RM15.68 mil and net profit of RM8.75 mil. It attributed the better performance to an increase in occupancy rate from 82.3% to 85%.
“The improvement was due to the occupancy rate improving in the current quarter and the period being the ‘Back to School’ season.
“In addition, the fund recognised lower upkeep of building, and marketing and advertisement expenses during the quarter, resulting in a higher bottom line,” it says.
KIP REIT also declared a second interim distribution of 1.75 sen per unit, or a total of RM8.75 mil, for the financial year ending June 30, 2018, payable on Feb 28.