Posted by Jimmy Song > 2018-04-24 10:49 | Report Abuse

KIP REIT REPORTS CONTINUOUS STABLE EARNINGS RESULTING IN AN EXCEPTIONAL DISTRIBUTION YIELD OF 9.5%* The Fund Reports Its First Full Twelve Months Performance Since Listing Kuala Lumpur, 23 April 2018 – KIP Real Estate Investment Trust (“KIP REIT” or “the Fund”), the first hybrid community-centric retail REIT listed on Bursa Malaysia today announced its third quarter results ended 31 March 2018 (“Q3FY2018”) with a total revenue of RM15.67 million and a higher profit after tax (“PAT”) of RM8.85 million compared with the immediate preceding quarter ended 31 December 2017 (“Q2FYE2018”). PAT for the quarter improved marginally by RM0.1 million or 1.1% higher compared to Q2FYE2018 due to the occupancy rate improving from 85.0% to 86.2% in the current quarter and lower other operating cost. For the quarter under review, the Manager of KIP REIT declared an interim distribution per unit (“DPU”) of 1.78 sen per unit, amounting to approximately RM8.85 million which will be paid to unitholders on 25 May 2018. For the trailing twelve months, the Fund has declared a total distribution of RM35.12 million or 6.95 sen per unit which translated to a distribution yield of 9.5%*. KIP REIT also announced today that it is going green by entering into a 25-year initiative to install solar photovoltaic system on all of KIP REIT’s assets which will generate 2,730 kilowatt peak electricity energy. This will save the Fund an approximate total of RM26.4 million of electricity cost throughout the 25-year period which will increase the net property income of the Fund. Commenting on the financial results, Dato’ Chew Lak Seong, Managing Director of KIP REIT Management Sdn Bhd (the Manager of KIP REIT) said, “This quarter’s results is very important to us as it gives us a full twelve (12) months of financial track record to prove ourselves. We are proud to say that we have exceeded expectations with our exemplary performance which allowed us to distribute a total of 6.95 sen per unit for the past 12 months. At the current market price, KIP REIT provides exceptional value with a distribution yield of 9.5%, one of the highest yields among the REIT players while still providing stable growing earnings.” He continued, “Barring any unforeseen circumstances, KIP REIT is expected to continue improving as we constantly pursue the perfect tenant mix and undertake asset enhancement initiatives to ensure that the properties yield stronger performance.” *The distribution yield of 9.5% is based on the closing price of RM0.735 per KIP REIT unit as at 23 April 2018. *** About KIP Real Estate Investment Trust KIP REIT was listed on the main market of Bursa Malaysia on 6 February 2017 with its principal activity of investing in a portfolio of retail real estate properties. All properties are strategically located at the suburbs and mainly concentrated on residential, commercial and industrial areas within a 5 KM radius of catchment areas. The Fund’s portfolio is comprised of five KIP Mart properties – a hybrid between traditional fresh markets and local community-based retail centres located at Tampoi, Kota Tinggi, Masai, Senawang and Melaka, and a KIP Mall – a shopping mall in Bangi with a total net lettable area of over 936 thousand square feet. As at 31 March 2018, total asset value of the Fund amounted to RM610.4 million. For more information about KIP REIT, please visit http://www.kipreit.com.my/