
KUALA LUMPUR (Oct 30): KIP Real Estate Investment Trust (KL:KIPREIT) is expected to post better earnings in the second quarter ending Dec 31, 2025 (2QFY2026), supported by full-quarter contributions from its recently acquired properties, according to CIMB Securities.
The new assets are projected to add about 8% of total rental income in 2QFY2026.
CIMB Securities reported that KIP REIT’s core net profit rose 68.6% year-on-year to RM17.9 million for 1QFY2026 — in line with expectations. The research house maintained its 'buy' call and target price (TP) of 95 sen, citing an attractive distribution yield of 7.8%-8.9% for FY2026-28.
The improved performance was driven by higher occupancy rates, positive rental reversions, and contributions from new assets including KIPMall Desa Coalfields, KIP Kuantan, and an industrial property in Bintulu. Portfolio occupancy rose to 98.3% in 1QFY2026.
TA Securities also maintained its 'buy' rating with a higher TP of RM1.09, noting that KIP REIT’s portfolio has expanded to 18 income-generating properties worth RM1.7 billion.
It said management is targeting 5%-10% rental reversions in FY2026 and aims to grow assets under management to RM2 billion by 2027.