KIP Real Estate Investment Trust (KIP REIT) announced Monday an increase in its net property income (NPI) to RM19.7 million for the first quarter ended Sept 30, 2024 for the financial year 2024/25, which is a 19.1% rise year-on-year compared to the corresponding quarter in the previous financial year, owing to the group's enhancement of current assets and acquisition of accretive assets, in addition to disciplined capital management, according to a press release circulated by the group.

In the same period Q1FY2024/25, gross revenue climbed 19.2%, reaching RM26.7 million, compared to RM22.4 million revenue received in the first quarter of the previous financial year. The growth was driven by the retail segment which accounted for 94.0% of the group's total revenue across seven KIP malls which saw their occupancy rates rise from 88.99% to 90.29%.

Meanwhile, the industrial segment also showed significant growth, with revenue rising 23.1%, further contributing to the overall performance in the first quarter of FY2024/25.

In addition, the completion of the asset enhancement initiatives at KIP Mall Senawang in September 2024 also played a role in strengthening the retail segment. The rejuvenation effort included the upgrade of the retail outlets, enhancement of the food & beverage spaces, and modernisation of key areas such as the mall's façade, air conditioning system, and fire safety infrastructure. The mall now houses 84 retail outlets and a new anchor tenant, ST Rosyam, which is expected to drive higher footfall and tenant performance.

Chief Executive Officer of KIP REIT, Valerie Ong Pui Shan, noted, "The outlook for current financial year remains positive, driven by our disciplined approach to capital management and our focus on identifying and acquiring accretive assets. We are confident that our strategic initiatives will continue to enhance our portfolio, providing long-term value to our unitholders. Our commitment to sustainable growth positions us well to capitalise on emerging opportunities in both the retail and industrial sectors."

KIP REIT has declared a distribution per unit of 1.52 sen for Q1FY2024/25. The book closure date is scheduled for 6 November 2024, with payment to be made on 26 November 2024. Based on the closing price of RM0.93 on 21 October 2024, the trailing twelve months' distribution per unit gives a yield of approximately 7.2%.

As at 10:22am Oct 22, the REIT traded at RM0.915 on Bursa's Main board. (Stock updates from Bursa Malaysia)