Income Distribution Entitlement Details: Second Income Distribution of 1.55 sen per unit for the 2nd Quarter of 2024 (from 1 October 2023 to 31 December 2023) comprising:- (1) 0.85 sen per unit is taxable; (2) 0.65 sen per unit is non-taxable; and (3) 0.05 sen per unit is tax exempt. Entitlement Type: Income Distribution Entitlement Date and Time: 14/02/2024 04:00 PM Year Ending/Period Ending/Ended Date: 30/06/2024 EX Date: 13/02/2024 To SCANS Date: Payment Date: 29/02/2024 Interest Payment Period: 01/10/2023 to 31/12/2023
smartly,.... this usually I do not understand the term.
Second Income Distribution of 1.55 sen per unit for the 2nd Quarter of 2024 (from 1 October 2023 to 31 December 2023) comprising:- (1) 0.85 sen per unit is taxable; (2) 0.65 sen per unit is non-taxable; and (3) 0.05 sen per unit is tax exempt.
Does it mean on the 1.55 cts declared, the 0.85 cts are taxable at 10 %, right and the 0.65 % is non taxable means no tax and the final 0.05cts is tax exempted... what it really means ???. I am not sure about this last 2 term. Can someone pls help explained and clarify on this ?
all give tp > RM1 but since listing, never before it touches above RM1. this stock is only good for keeping for its dividends. those looking for higher interest yield than epf, not a bad idea to park your money here
They have bought the 3 industrial lots and Kinta City which are damn good investment for KIPREITS. Makes KIP not so reliance to just shpping mall and a bit diversify. If they keep on this trend it will be good in the future.
Q2FY2024 - 10.6m Q2FY2023 - 8.1m so the 3 industrial properties have contributed approximately (10.6 - 8.1) 2.5m per Q yearly net profit will have additional 10m, this translate to 0.16sen additional DPU yearly
Haiyan….@smartly - did you understand my question? You calculation claims on industrial pro wil contribute 0.16 (nett 0.144) annually. Does this consider the increase in number of units following the placement and issue of new shares in lieu of the industrial property acquisition
"The exercise will be funded by a combination of bank borrowings and proceeds to be raised from a proposed placement of up to 180 million new shares in KIP REIT to raise up to RM146.70 million, and a proposed placement of up to 15 million units to major shareholder Datuk Ong Kook Liong, and/or persons connected with him.
"The actual issue price for the placement units will be determined later and may be higher or lower than the illustrative issue price of 81.5 sen per unit," it added."
What will be the impact to the current share price?
Placements (assuming this is private) at discounted share price is to attract institutional investors, not really a fan of it. Basically means dilution and retail investors always lose out. Short term share price should drop a bit and dividend distribution as well until DPulze starts contributing to the NPI. Likely to expect something similar to 2022 when they acquired the 3 industrial properties, dividend dropped to 6.2 sen/unit for FY23. But KIP's strength has always been giving out consistent dividends. Safe to still expect a after WHT tax of 6% DY. This counter is always about stability. Bought in 2022 and share price is still ~0.89
Hi 5 to Trinity, hahah i have been holding kipreit since 2022 to harvest dividend portfolio. Yes its a stable stock. the price is always around ~0.89. its bitter sweet
DPulze have 100% occupancy rate and current yield is 7% now. Expected to increase by 5% yearly upon expiry of tenancy agreement. So certainly it is a good buy
DPulze's revenue contribution will only be taken into account after it is fully completed which I anticipate should be before FY2024 ends, so we will see DPulze's contribution coming in from FY2025 Q1 onwards. Clean execution by the team too.
Wonder why last few days the major shareholders are disposing the shares of this company. Could it be that they get it at lower prices by the rights issue for the purchase of the D Cruz and now disposing off the excessive shares and make the money. If that is the case not fair to retail shareholders.
They should have equal rights to get the rights issue at 80 cts, is it ? and nost just issue to institutional investors or main shareholders
Currently, there are 618M+ shares at RM0.89. Part of the new fund raise to purchase DPulze is new 180M shares that could be higher or lower than RM0.815. And another 15M shares placement to Dt Ong.
Its definitely diluting further, last I roughly calculated its 20-30% dilution. Hence you should expect only 6% dividend yield in FY2025 from the enlarged no. of shares despite dividend distribution increasing from more NPI. One may argue the drop in DY% is temporary, but if the REIT continues to expand via more private placements (which they have been doing since 2022), we should almost never expect a growth of DPU (i.e. share price to stay constant). Private placements only benefit the institutions, never small kacang like us. If they sincerely care about us retailers then a DRP should be proposed soon, but ive never seen DRP in MY REITs before.
Anyhow. ~6% is a somewhat good return for a very stable (for now) REIT like KIP REIT, which attracts risk-averse investors. You basically sleep well every night without all the clown fiestas that you can see in YTLP i3 forum. They know that and hence is why I believe private placements and share dilution will still continue in future. I do hope I'm wrong, we'll see.
If the rights issue are placed at the same value as their placement value or even 5 to 10% % higher most investor will buy it up. Then only the untaken up ones can be placed to institutional investors which are typically long term holders.
In the circular that's available today: 2.2.1 Details of the Proposed Placement ... The maximum number of Placement Units to be issued for the Proposed Placement was determined based on an illustrative issue price of RM0.815 per Placement Unit, which would result in the issuance of a maximum number of 180,000,000 Placement Units. Notwithstanding this, subject to the maximum number of 180,000,000 Placement Units, the actual issue price for the Placement Unit can only be determined later and may be higher or lower than the illustrative issue price of RM0.815 per Placement Unit.
2.2.2 Basis of determining the issue price of the Placement Units ... In any event, the Placement Units will be issued at not more than 10% discount to the 5-day VWAP of Units immediately before the price fixing date to be announced on a later date.
2.2.6 Utilisation of proceeds ... For illustrative purposes only, assuming only 15,000,000 Placement Units are placed out to Dato’ Ong Kook Liong and Persons Connected at an illustrative issue price of RM0.815 per Placement Unit, the gearing ratio of KIP REIT will increase from 37.27% (as at 30 June 2024) to 48.20% after the Proposed Acquisition, which is still below the prescribed 50.0% gearing limit.
7.1 Unitholders’ capital The Proposed Acquisition will not have any effect on the unitholders’ capital as the Proposed Acquisition does not involve any issuance of new Units by KIP REIT.
The pro forma effect of the Proposed Placement (including the Proposed Placement to Dato’ Ong Kook Liong and Persons Connected) and on the unitholders’ capital is shown below: No. of Units; RM Existing as at the LPD 618,630,000; RM583,626,000 To be issued pursuant to the Proposed Placement 180,000000; RM145,020,000 Enlarged unitholders’ capital 798,630,000; RM728,646,000
7.4 Earnings and distributable income The Manager believes that following the completion of the Proposals, the Proposed Acquisition is expected to contribute positively to the earnings and distributable income of KIP REIT for the future financial years.
The issuance of new Units pursuant to the Proposed Placement will initially dilute the EPU and DPU due to the enlarged number of Units in circulation. However, after taking into consideration the additional estimated net property income of the Property following the completion of the Proposed Acquisition, the Manager believes that the Proposed Acquisition is expected to contribute positively to the earnings and distributable income of KIP REIT for the future financial years.
11. TENTATIVE TIMEFRAME FOR IMPLEMENTATION Barring any unforeseen circumstances and subject to all requisite approvals being obtained, the Proposals are expected to be completed in the 4 th quarter of 2024. 25 The tentative timetable for the implementation is as follows: Meeting, 2 October 2024 Fulfilment of all conditions precedent, Early October 2024 Announcement of the price-fixing date for the Placement Units, Mid November 2024 • Issuance and allotment of the Placement Units • Listing of and quotation of the Placement Units, Early December 2024
This deal on private placement is not fair to all the other shareholders which have been supporting the company all along.
Not withstanding this, subject to the maximum number of 180,000,000 Placement Units, the actual issue price for the Placement Unit can only be determined later and may be higher or lower than the illustrative issue price of RM0.815 per Placement Unit.
Just imagine 180 mil units at 0.815 cents. Say 10 cts per share difference, that is a cool 18 million ringgit immediate gain. Why not offer this to the rest of shareholders as right issue ?. If no takers, I rest my case, if not why not ?
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Justmeme
235 posts
Posted by Justmeme > 2024-01-24 10:23 | Report Abuse
actually I buying a lot last few days at 885. After announcemnet it goes to 90 cts I just sell