KUALA LUMPUR (Jan 16): KIP REIT (KL:KIPREIT) may see an up to 44%-60% surge in the December-end quarter from a year earlier thanks to income from newly acquired assets, TA Securities said.

The real estate investment trust is expected to report net profit of RM18 million-RM20 million for the second financial quarter, according to the research house’s earnings preview. For the first six months of the reporting year, net profit will likely come in at RM35.5 million-RM37.5 million, it said.

“Earnings should mainly reflect the full-quarter contribution” from three acquired assets and the initial contribution from an industrial property completed in October, TA Securities said.

The trust is expected to announce its financial results next week.

Between July and December, KIP REIT acquired KIPMall Desa Coalfields and KIPMall Kuantan. The trust also completed the acquisition of a Bintulu land with an office-cum-factory and another industrial property in Pasir Gudang.

The new assets expanded its portfolio to 18 income-generating properties worth RM1.7 billion across Peninsular Malaysia and Sarawak. The trust is targeting to have RM2.0 billion of assets under management by 2027 supported by acquisitions across both the retail and industrial sectors.

KIP REIT’ units have gained 11% in value last year while analysts are unanimously positive. All four research houses, including TA Securities, have a ‘buy’ call on the trust. The average target price is RM1.04, according to the research houses tracked by Bloomberg.

For the full financial year ending June 30, 2026, TA Securities is forecasting net profit of RM68.3 million, a tad below the consensus estimate of RM70 million.