KIP REIT posts record FY2026 results, lifts annual distribution to 7.26 sen

PETALING JAYA (July 24): KIP Real Estate Investment Trust (KIP REIT) posted record financial results for FY2026 ended June 30, driven by contributions from newly acquired assets, stronger rental income from its existing portfolio and higher fair value gains on investment properties.

Revenue for the financial year increased 30.1% to RM177.1 million from RM136.1 million a year earlier, while profit before tax rose 30% to RM149.7 million, according to a Bursa Malaysia filing on Thursday (July 23)..

Net profit climbed 26.2% to RM145.3 million from RM115.1 million, although the reported earnings included RM72.9 million in unrealised fair value gains from investment properties. On a realised basis, profit after tax increased 42.7% to RM73.6 million, while income available for distribution rose 41.4% to RM74.5 million.

For the fourth quarter, revenue rose 20.9% year-on-year to RM48.2 million, while profit before tax increased 22.1% to RM96.8 million. Net profit came in at RM92.4 million, supported by a RM74.1 million quarterly fair value gain. Realised profit after tax for the quarter grew 33% to RM20.2 million, while distributable income increased 30.7% to RM20.5 million.

Final distribution lifts FY2026 payout to record 7.26 sen

KIP REIT declared a final income distribution of 2.03 sen per unit for the quarter ended June 30, bringing total FY2026 distributions to a record 7.26 sen per unit, up from 6.80 sen in FY2025.

The units will trade ex-entitlement on Aug 6, with entitlement fixed on Aug 7 and payment scheduled for Sept 2.

Retail portfolio continues to drive earnings

The manager said the stronger performance was primarily driven by improved contributions from KIP REIT's existing retail portfolio together with income from assets acquired during FY2026, namely KIPMall Desa Coalfields, KIP Kuantan, and industrial properties in Bintulu and Pasir Gudang.

Retail assets remained KIP REIT's main earnings driver, contributing 93.4% of FY2026 revenue, while industrial assets accounted for the remaining 6.6%. Net property income increased 34.1% to RM129.9 million.

Property revaluation adds RM72.9 million to earnings

Separately, KIP REIT completed its annual revaluation exercise, with its investment property portfolio valued at RM1.7485 billion as at June 30, 2026.

After excluding RM170.0 million of acquisitions and RM20.8 million of capital expenditure during the financial year, the exercise resulted in a RM72.9 million fair value gain recognised in FY2026 earnings.

Among the largest valuation increases were AEON Mall Kinta City (RM47 million), KIPMall Tampoi (RM11 million), KIPMall Kota Warisan (RM7 million) and KIPMall Melaka (RM5.8 million).

The manager said the revaluation increased total asset value by RM76.6 million and improved KIP REIT's gearing ratio by 1.62 percentage points.

NAV rises to RM1.1504 per unit

Net asset value after distribution increased to RM1.1504 per unit as at June 30, 2026, from RM1.1196 a year earlier.

Total investment properties stood at RM1.7485 billion, while cash and bank balances amounted to RM103.7 million at the end of the financial year.

Setapak Central acquisition marks next growth phase

In a separate press statement, CEO Valerie Ong said FY2026 marked KIP REIT's strongest financial and operational performance since its listing in 2017, citing record revenue, net property income, realised profit and annual distributions.

She said unitholders' approval for the proposed RM435 million acquisition of Setapak Central Mall would strengthen the REIT's portfolio by adding its first asset in Kuala Lumpur and support its next phase of growth. The acquisition, together with the proposed private placement approved on July 23, is expected to increase assets under management to more than RM2 billion, according to the manager.

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