KIP REIT posts 41% jump in property income for Q2

16 Jan 2020 / 22:21 H.

PETALING JAYA: KIP Real Estate Investment Trust (KIP REIT) has recorded a 41% increase in net property income to RM14.73 million for the second quarter ended Dec 31, from RM10.45 million in the previous corresponding quarter.

Gross revenue grew 26.3% to RM19.73 million from RM15.62 million a year ago.

In a Bursa filing, the group said the commendable results were primarily attributable to the acquisition of AEON Mall Kinta City (AMKC) in July last year.

Net profit for the quarter also rose 16.9% to RM9.23 million from RM7.9 million previously, mainly due to lower borrowing cost, revenue contribution from AMKC and higher cost savings.

2Q20’s distributable income was RM9.4 million, 17.5% higher than 2Q19.

KIP REIT declared a distribution per unit of 1.76 sen for the second quarter, which represented an income distribution rate of 95%. Based on its closing price of 90 sen today, the annualised DPU gives a yield of 6.8%.

KIP REIT Management Sdn Bhd managing director Datuk Chew Lak Seong said the group would continue to look for areas of expansion and identify

yield-accretive assets in the coming financial years as part of its acquisition strategy to enlarge its total assets under management to RM1.5 billion within the next five years.

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