KIP REIT 1Q revenue up 19.6% to RM48.75m, net profit flat at RM17.26m

KIP Real Estate Investment Trust posted a 19.6% year-on-year rise in revenue to RM48.75 million for 1QFY2027, while net profit was broadly flat at RM17.26 million. Higher management fees and borrowing costs offset gains from its retail and industrial portfolio.

PETALING JAYA (Oct 20): KIP Real Estate Investment Trust (KIP REIT), which owns retail and industrial properties, posted a 19.6% year-on-year increase in revenue for its first quarter ended Sept 30, 2026 (1QFY2027), while net profit remained broadly unchanged amid higher management fees and borrowing costs.

Revenue rose to RM48.75 million from RM40.77 million a year earlier, while net property income (NPI) increased 17.6% to RM34.95 million from RM29.72 million, according to its unaudited quarterly results filed with Bursa Malaysia on Monday (Oct 19).

Net profit edged up 0.1% to RM17.26 million from RM17.24 million. Distributable income for the quarter was also largely unchanged at RM17.61 million, compared with RM17.60 million previously.

The trust attributed revenue growth mainly to better performance across its KIPMalls and contributions from acquired properties. Borrowing costs increased 34.2% to RM8.66 million from RM6.46 million, while the manager's management fee rose 33.6% to RM6.09 million from RM4.56 million. The manager said the higher management fee reflected the increase in total asset value and NPI, while additional borrowings for property acquisitions lifted financing costs.

The retail segment remained the main revenue contributor, accounting for 93.3% of the total. Retail revenue increased 17.5% to RM45.48 million, while its NPI rose 14.5% to RM31.70 million. Industrial revenue increased 59.8% to RM3.27 million, while the segment's NPI rose by the same percentage to RM3.26 million. The segment accounted for the remaining 6.7% of revenue.

KIP REIT paid an advance income distribution of 0.82 sen per unit on Sept 24 for the period from July 1 to Aug 24, 2026, covering only part of the quarter. Its manager intends to distribute at least 90% of distributable income for the financial year ending June 30, 2027.

Chief executive officer Valerie Ong said the trust's next priority was to maximise the earnings potential of its enlarged portfolio, with assets under management now standing at approximately RM2.2 billion. She said KIPMall Setapak was expected to contribute its first full quarter of income in 2QFY2027, following completion of its RM435 million acquisition on Sept 30.

“We expect this contribution to further strengthen our recurring income base and support distributable income growth,” Ong said in a statement. She added that the trust would focus on leasing, tenant mix optimisation, targeted asset enhancements and operational efficiencies to support NPI growth.

KIP REIT's portfolio comprises 20 properties, including six industrial assets, with total net lettable area exceeding 3.8 million sq ft. Gearing increased to 42.64% at Sept 30, 2026, from 39.10% at June 30, 2026. Net asset value per unit after income distribution stood at RM1.0824, compared with RM1.1504 at June 30.

Separately, unitholders approved a resolution authorising the issue and allotment of new units at the trust's 10th annual general meeting on Monday, with 98.82% of votes cast in favour, according to its meeting-outcome announcement.