AT RM14.73 mil, KIP Real Estate Investment Trust (REIT) recorded a 41% yoy increase for its net property income in its results for the second quarter of its 2020 financial year which ended Dec 31, 2019.
Gross revenue also rose 26.3% yoy, according to a statement by the REIT, attributing this to the acquisition of AEON Mall Kinta City in July 2019. Net profit came to RM9.23 mil, an increase of 16.9%, due to lower borrowing cost, revenue contribution from AEON Mall Kinta City and higher cost savings.
“This (the results) was underpinned by the 5 months contribution from AEON Mall Kinta City which we acquired in July last year. As part of our acquisition strategy to enlarge the total asset (under management) to RM1.5 bil within the next 5 years, we will continue to look for areas of expansion and identify yield-accretive assets for acquisition in the coming financial years,” said Datuk Chew Lak Seong, managing director of KIP REIT Management Sdn Bhd, manager of KIP REIT.
Chew also noted that the Malaysian retail industry will continue to face challenges from external and internal factors, including trade uncertainties, global economic conditions and limited fiscal policies aimed at stimulating consumer spending.
At the end of the trading day, KIP REIT’s shares were traded at 90 sen, up half a sen, with 177,500 shares changing hands. – Jan 16, 2020
