KUALA LUMPUR: KIP Real Estate Investment Trust (REIT) posted a net profit of RM10.39 million for the first quarter (Q1) ended September 30, 2023 (FY24), up 18.2 per cent from RM8.79 million a year ago due to contributions from its three industrial properties and higher occupancy rates for retail.
Revenue for the quarter rose to RM22.37 million versus RM19.35 million in Q1 FY23, supported by revenue contributions from the retail segment in the southern region.
Three regional malls reported gross revenue of RM10.4 million or 49.5 per cent of the total revenue.
The central region's three malls recorded revenue of RM6.2 million or 29.3 per cent, while KIP REIT's sole mall in the northern region clocked in RM4.5 million or 21.2 per cent of the total revenue.
KIP REIT chief executive officer Valerie Ong Pui Shan said that with occupancy rates of over 90 per cent across many KIPMalls, the results demonstrated its ability to attract the right mix of shoppers and tenants to the properties.
"The retail segment will remain KIP REIT's primary engine of growth.
"We want to enhance our industrial portfolio if the right opportunity arises.
"Furthermore, we are pleased to announce that following our seventh annual general meeting in early October, we have obtained the unitholders' approval for the proposed acquisition of KIPMall Kota Warisan. We are looking forward to onboarding our eighth retail asset into our portfolio," she said in a statement.
Ong noted that the company is also on track to complete its asset enhancement initiatives at KIPMall Bangi this year.
"We will initiate asset enhancement initiatives (AEI) projects at other KIPMalls to ensure tenants and shoppers enjoy a pleasant shopping environment.
"The team is eager to deliver results, and we are optimistic that we will be able to sustain our financial performance for the financial year 2024," she said.
The company has proposed a first income distribution of RM9.4 million, translating to 1.55 sen per unit.
The book closure is fixed for November 3, and the proposed income distribution payment will be made on November 23.