This article first appeared in The Edge Malaysia Weekly on August 17, 2026 - August 23, 2026

Driven by its distinctive focus on the resilient suburban retail model and strategic asset acquisitions, KIP Real Estate Investment Trust (KL:KIPREIT) continues to deliver outstanding financial performance among its peers, securing it two accolades at The Edge Malaysia Centurion Club Corporate Awards 2026 in the REIT category.

The trust bagged the awards for Highest Growth in Profit After Tax Over Three Years and Highest Return on Equity Over Three Years, building on its success at the previous Centurion Club awards, where it emerged as a hat-trick winner, also sweeping the Highest Returns to Shareholders Over Three Years award. This brings KIP REIT’s Centurion Club tally to seven since the inaugural awards in 2019, including two other Highest Return on Equity Over Three Years awards in 2023 and 2024.

The latest milestone was achieved as KIP REIT’s net profit (income available for distribution) for the financial year ended June 30, 2025 (FY2025) surpassed the RM50 million mark for the first time. Net profit reached RM52.7 million, up from RM45.6 million in FY2024, RM38.8 million in FY2023 and RM37.3 million in FY2022, translating to a compound annual growth rate (CAGR) of 12.2% over the three-year period under the awards methodology. This beat all other Bursa Malaysia-listed REITs with a market value of under RM1 billion, helping the REIT clinch its second consecutive award for best profitability growth.

At the same time, it outperformed with a three-year weighted return on equity (ROE) of 6.7%, following ROE prints of 6.38% in FY2023, 6.81% in FY2024 and 6.7% in FY2025. This operational excellence earned the REIT its fourth consecutive win in the category.

As at end-FY2025, its average portfolio occupancy rate improved to 96.7% from 94.1% a year earlier. During the financial year in review, the REIT continued to adopt the “2+2” rent model strategy, allowing rental revisions every two years instead of being locked into a five- or six-year term.

The REIT’s momentum continued into FY2026, with net profit climbing to RM74.46 million (unaudited) from RM52.7 million, as net property income jumped 34.1% to RM129.9 million from RM96.8 million after revenue expanded to RM177.1 million from RM136.1 million. The retail segment contributed nearly 94% to its top line, with the balance derived from its industrial segment.

The stronger earnings were mainly attributed to overall better performance by its eight KIPMalls, alongside contributions from four newly acquired properties, comprising two retail assets (KIPMall Desa Coalfields in Selangor and KIPMall Kota Tinggi in Johor) and two industrial facilities (a warehouse in Bukit Raja, Selangor, and a manufacturing plant in Pasir Gudang, Johor).

Reflecting these solid results, the REIT declared a distribution per unit of 7.26 sen for FY2026, up from 6.80 sen for FY2025, 6.67 sen for FY2024 and 6.20 sen for FY2023.

To further expand its retail footprint, KIP REIT is acquiring Setapak Central Mall in Kuala Lumpur from Festiva Mall Sdn Bhd — an indirect unit of Singapore-listed Frasers Property Ltd — for RM435 million. Unitholders’ approval for the transaction, which will mark the REIT’s 20th asset and its largest acquisition by value since listing in February 2017, was obtained at its extraordinary general meeting on July 23.

The three-storey mall had a net lettable area of 514,777 sq ft and an occupancy rate of 99.89% as at Feb 28 this year. The acquisition will be funded through bank borrowings and a private placement aimed at raising RM176.8 million.

On completion of the purchase, KIP REIT’s assets under management (AUM) will expand from RM1.7 billion to RM2.1 billion, achieving its RM2 billion milestone ahead of its 2027 target.

Of the existing 19 assets, 13 are community-centric retail malls across the central (five), southern (four), northern (two) and east coast (two) regions. The remaining six are industrial assets.

In an interview with The Edge earlier this year, KIP REIT CEO Valerie Ong Pui Shan said that once the RM2 billion AUM milestone is achieved, the REIT will shift its focus to optimising its assets to unlock their full potential and create long-term value for unitholders. She added that she believed the REIT’s neighbourhood malls, which cater to the mass market, would continue to generate resilient growth, supported by asset enhancement initiatives to maintain their relevance and attractiveness to consumers.

Hextar Group CEO Datuk Eddie Ong Choo Meng is KIP REIT’s largest unitholder with an 8.76% stake, followed by KIP REIT co-founder and managing director Datuk Ong Kook Liong — who is Valerie’s father — with 7.47%.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.