KUALA LUMPUR (July 25): KIP Real Estate Investment Trust (KL:KIPREIT) said on Thursday its net property income surged 62.8% in the final quarter of 2024 earlier, thanks to strong gain of retail properties in the northern and central regions.

Net property income totalled RM26.43 million for the three months ended June 30, 2024 (4QFY2024) compared with RM16.23 million over the same period last year, KIP REIT said in an exchange filing. Revenue rose 46% year-on-year to RM32.64 million from RM22.39 million.

Income distributable to unitholders however was 28% higher at RM13.49 million versus RM10.52 million in 4QFY2023. Distribution per unit was 1.97 sen, up against 1.75 sen in 4QFY2023.

“The manager holds a favourable outlook, considering the positive performance of KIP REIT’s existing property portfolio and their strategy endeavours to actively enhance leasing and operational strategies,” KIP said. The manager expects to “sustain a stable performance” throughout the year, it said.

KIP REIT’s portfolio comprises eight retail malls in southern, central, and northern regions of Malaysia, as well as three industrial properties. All in all, the 11 assets are worth RM1.05 billion at the end of June

“We are excited by the potential of our existing assets and the vast opportunities to acquire high quality accretive assets with strong recurring rental income to expand our portfolio,” said KIP REIT chief executive officer Valerie Ong Pui Shan. “Our robust pipeline and well-defined goals give us confidence in our ability to deliver outstanding results and propel KIP REIT's sustainable growth.”

KIP REIT is in the midst of completing the previously-announced acquisition of DPulze Shopping Centre, its ninth retail asset. If successful, the RM320 million deal would be its largest acquisition since its listing in 2017.

The trust is “well on our way to achieve our goal” of reaching RM2 billion in assets under management within the next three years, said Ong. “Our active acquisition strategy continues to be a driving force behind our success.”

For the full financial year of 2024 (FY2024), net property income totalled RM77.82 million compared to RM62.15 million over the same period last year. Comprehensive income totaled RM47.31 million, down 22% from RM60.79 million in FY2023.

The trust booked a loss in fair value on investment properties of RM4.23 million in FY2024 compared to a gain of RM23.09 million in FY2023. Total distribution per unit for FY2024 was 6.67 sen versus 6.2 sen in FY2023.

Books are set to close on Aug 9 and the distribution is expected to be paid on Aug 30, 2024. That translates into a yield of about 7.4% for FY2024 based on Friday’s closing price of 90.5 sen.