Gearing ratio: 35.2%
Geographical presence
1. Northern
-AMKC
2. Southern
-KIP mall Tampoi
-KIP Mall Masai
-KIP Mall Kota Tinggi
3. Central
-KIP Mall Bangi
-KIP Mall Melaka
-KIP Mall Senawang
Net properties income
| 2021 | 2022 | ||||
| Northern | Southern | Central | Northern | Southern | Central |
1st QR | 3,934 | 6,995 | 3,072 | 4,329 | 6,268 | 3,076 |
2nd QR | 4,173 | 6,689 | 3,034 | 4,365 | 6,933 | 3,082 |
3rd QR | 4,129 | 6,747 | 2,813 | 4,313 | 7,123 | 3,065 |
4th QR | 4,283 | 7,510 | 3,283 | 4,283 | 7,252 | 2,665 |
Year to date result:
Northern
-revenue higher by 4.5% due to step up rent
Southern
-revenue lower by 1.4% due to lower promotional area and lower occupancy
Central
-revenue lower due to lower occupancy rate and higher cost management
Latest proposed acquisition:
-acquisition of 3 industrial properties for a total cash consideration of RM78,700,000
A) Klang property 1 (port klang)- RM27,000,000
B) Klang property 2 (Port Klang)- RM 23,700,000
C) Klang property 3 (port Klang)- RM 28,000,000
Based on the information provided, it is expected to increase gearing ratio to 39 % from 37% and will bring down DPU from 6.84 to 6.30 sen. (*don't forget reit dividen is taxaable -10%).
Short term wise-after private placement and acquisition,
Dividen yield (rough calculation-because kipreit dividen has taxable portion and non taxable portion)= 0.063x 0.9 (tax of 10%)/ 0.91=6.2%.
Long term wise, the injection of industrial properties might provide income stabilities for KIPREIT.
Other associated risk
1. Increasing interest rate, which will imply higher finance cost
