KUALA LUMPUR (Oct 19): KIP Real Estate Investment Trust (KL:KIPREIT) reported an 18% rise in net property income in its recently ended quarter thanks to newly acquired assets by the REIT.

The outlook for the remaining months of the financial year ending June 30, 2027 (FY2027) is favourable considering the positive performance of its existing property portfolio and efforts to boost leasing while pursuing investments, the trust said in an exchange filing.

KIP REIT is expected to sustain a stable performance throughout the fiscal year, its managers said.

Net property income was RM34.95 million for the three months ended Sept 30 compared to RM29.72 million in the same quarter last year.  

Additions of retail and industrial assets in Selangor, Johor, Negeri Sembilan, and Sarawak lifted revenue by a little under 20% year-on-year to RM48.75 million. However, earnings per unit fell to 1.49 sen from 1.87 sen, following the expansion of its unit base from a private placement and listing of 200 million new units during the quarter.

No distribution was declared, though the trust paid out an advance income payout per unit of 0.82 sen in September.

The trust currently manages 20 properties, including six industrial assets, worth over RM2 billion.

KIPMall Setapak is expected to contribute its first full quarter of income in the current quarter following the completion of its acquisition in September, chief executive officer Valerie Ong said in a statement.

“We expect this contribution to further strengthen our recurring income base and support distributable income growth,” she added.