KIP REIT quarterly profit dips on higher management fees

PETALING JAYA: KIP Real Estate Investment Trust (REIT) saw its net profit for the first quarter slide 4.6% to RM7.26mil on the back of higher management fees charged, at 0.6% of total asset value, compared with 0.4% of TAV during the same period a year ago.

Its revenue and net property income, however, saw an increase of 1.9% and 3.3% to RM15.6mil and RM9.9mil, respectively.

In its filing with Bursa Malaysia, the group said this was attributed to the increase in the occupancy rate to 86.3% from 83% a year ago.

It said KIP Mart contributed 76.1% of KIP REIT’s total revenue, or RM11.9mil, while net property income was at RM7.5mil, representing a 2.5% increase year-on-year.

Rental per sq ft increased from RM5.10 to RM5.14 in the current quarter, the group said.

KIP Mall, meanwhile, contributed 23.9% of KIP REIT’s total revenue, with net property income coming in at RM2.4mil.

The group said KIP Mall had a notable improvement in its occupancy rate to 86.2% from 78.6% a year ago.

Moving forward, KIP REIT said it expects the retail space at all its properties to remain resilient in terms of occupancy and rental rates under current market conditions.

It noted that the properties had recorded an average occupancy rate of 86.3% in the first quarter and expects to see further improvement by upgrading the food and beverage segment.

The group added that it continued to undertake asset-enhancement initiatives to keep up with the market.