KIPREIT (5280)

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