KUALA LUMPUR (July 24): KIP Real Estate Investment Trust's (REIT) net property income for the fourth quarter ended June 30, 2023 (4QFY2023) grew 14.32% to RM16.23 million, from RM14.2 million a year earlier, on the back of higher revenue.
Revenue for the quarter rose 16.5% to RM22.39 million, from RM19.22 million in 4QFY2022, driven by higher gross revenue from its retail and industrial segments.
Net profit, however, declined 31.91% to RM33.34 million from RM48.96 million, according to the group's bourse filing.
Earnings per share fell to 5.5 sen from 9.69 sen in 4QFY2022.
KIP REIT has proposed a final income distribution of 1.75 sen per unit, bringing the cumulative dividend for FY2023 to 6.2 sen, compared with 6.8 sen for the previous year.
For the full financial year, KIP REIT’s revenue rose 13.64% to RM83.75 million from RM73.7 million in FY2022, while net profit fell 19.49% to RM60.79 million from RM75.51 million.
KIP REIT chief executive officer Valerie Ong Pui Shan said that the group expects its retail segment to continue to be the driving force for the investment trust moving forward.
“Our retail properties have seen extremely encouraging occupancy rates of over 90% which proved that we are attracting the right shopper and tenant mix," Ong said in a statement.
She said the REIT will complete its asset enhancement initiatives (AEI) at KIPMall Bangi by this year and will kickstart plans to begin AEI at KIP REIT's other KIPMalls to ensure tenants and shoppers experience a comfortable shopping environment.
"Looking ahead, we are especially excited to welcome KIPMall Kota Warisan into our portfolio. This will increase our asset portfolio to 11 when the acquisition completes by the first quarter of the 2024 calendar year," she added.
KIP REIT units closed unchanged at 90 sen on Monday (July 24), giving the REIT a market capitalisation of RM545.72 million.