KIPREIT 5280 KIP REAL ESTATE INVESTMENT TRUST 3Q NPI up 5.9% to RM14.5 mil, declares DPU of 1.60 sen

 KIPREIT 5280 KIP REAL ESTATE INVESTMENT TRUST 3Q NPI up 5.9% to RM14.5 mil, declares DPU of 1.60 sen

KUALA LUMPUR (April 20): KIP Real Estate Investment Trust (REIT) net property income (NPI) in the third quarter ended March 31, 2022 (3QFY22) rose 5.9% to RM14.5 million from RM13.7 million reported in the previous year, underpinned by higher revenue from contracts with customers.

In a Bursa Malaysia filing on Wednesday (April 20), the REIT said its revenue increased by 4.7% to RM18.83 million compared with RM17.99 million, supported by lower rental rebate amortisation and better promotional area income as a result of the further relaxation of the standard operating procedures during the quarter compared with a year ago.

The group declared a third income distribution of 1.6 sen per unit, to be paid on May 23, 2022.

For the full nine-month period ended March 31, the group’s NPI surged 2.3% to RM42.55 million from RM41.59 million while revenue declined marginally by 0.7% to RM54.48 million from RM54.85 million a year earlier.

On a quarterly basis, the group’s NPI increased by 0.8% from RM54.85 million in the immediate preceding quarter (2QFY22) while revenue rose by 1.7% from RM18.51 million in 2QFY22.

“Our financial performance for 3QFY22 was commendable. Following the easing of containment measures, Malaysia entered into the endemic phase as of April 1 and we have since observed that consumer confidence and shopper footfall have improved amid the rapid vaccination progress and milder symptoms from the Omicron variant.

“Our team will continue to put in our best efforts to work closely with our tenants and stakeholders to ensure sustainability of their business and at the same time to strike an appropriate balance between rental and occupancy rates. Nevertheless, we remain cautious of the impact of the global economy’s uncertainties, led by the geopolitical instability and lockdown of cities across China.

“We will continue to remain proactive in our asset management, exploring for yield-accretive acquisitions and exercising fiscal prudence to deliver sustainable and steady distribution per unit to our unitholders,” said KIP REIT Management Sdn Bhd executive director, Datuk Eric Ong Kook Liong.

Shares in KIP REIT ended unchanged at 86 sen on Wednesday, giving it a market capitalization of RM434.56 million.

http://www.theedgemarkets.com/article/kip-reit-3q-npi-59-rm145-mil-declares-dpu-160-sen