KIP Real Estate Investment Trust · MYX:KIPREIT
KIP Real Estate Investment Trust — Q1 FY2023 Earnings Presentation
33 slides from KIP Real Estate Investment Trust's earnings presentation, October 2022
Slide 1: Financial Results for Q1FY2023
FINANCIAL RESULTS FOR Q1FY2023 K I P R e a l E s t a t e I n v e s t m e n t Tr u s t KIP:MK (5280)
Slide 2: Contents
CONTENTS Section 1 Key Highlights Section 2 Financial Performance Section 3 Portfolio Updates Section 4 Acquisitions Section 5 Outlook and Moving Forward Section 6 Appendix – Asset Portfolio 2
Slide 3: Key Highlights
Key Highlights KIPMALL - SENAWANG
Slide 4: Key Highlights Q1FY2023 & FY2022
KEY HIGHLIGHTS Q1FY2023 & FY2022 Gross Revenue Net Property Realised Profit Distributable Distribution Per Average Occupancy TTM Distribution Income After Tax Income Unit Rate Yield Q1FY2023 RM19.3 M RM14.3 M RM8.8 M RM9.1 M 1.45 Sen 90.1% 7.49% 12.9% 4.8% 5.0% 7.4% 6.5% 3.1% Point Y-o-Y Y-o-Y Y-o-Y
Slide 5: Financial Performance
Financial Performance KIPMall - MELAKA
Slide 6: Financial Performance: Gross Revenue
FINANCIAL PERFORMANCE Gross Revenue Gross Revenue (RM'000) (549) 2,212 0.7% Q1FY2022 vs Q1FY2023 12.9% ▪ The increase in revenue was mainly 128 74,249 73,700 due to lower base revenue in the 0.7% previous corresponding quarter as a result of reduced promotional area income on the back of restriction
Slide 7: Financial Performance: Net Property Income
FINANCIAL PERFORMANCE Net Property Income Net Property Income (“NPI”) (RM'000) 660 92 Q1FY2022 vs Q1FY2023 4.8% 0.2% 133 ▪ Net property income improved on the 0.9% 56,662 56,754 back of higher revenue recorded but was partially offset by higher property expenses with full force operating 13,673 14,3
Slide 8: Financial Performance: Profit after Tax
FINANCIAL PERFORMANCE Profit after Tax Profit after Tax (RM'000) Realised Profit after Tax (RM'000) 422 40,288 422 (25) 5.0% 114.4% 5.0% (0.1%) (40,169) (703) -82.0% -7.4% 36,043 36,068 75,509 9,050 9,126 9,496 8,793 48,962 8,371 35,221 8,371 9,050 9,126 8,793 Q1FY2022 Q2FY2022 Q3FY2022 Q4FY2022* Q1
Slide 9: Distributions
DISTRIBUTIONS Distributable Income (RM'000) Distribution Per Unit (Sen) 9,728 9,562 9,582 2.10 9,085 1.60 1.55 1.55 1.45 52% 51% 51% 49% 47% 8,456 Q1FY2022 Q2FY2022 Q3FY2022 Q4FY2022 Q1FY2023 Q1FY2022 Q2FY2022 Q3FY2022 Q4FY2022 Q1FY2023 Distributable Income Distributable Income Margin Total distribu
Slide 10: Attractive Yield vs Other Investments
ATTRACTIVE YIELD VS OTHER INVESTMENTS Continues to deliver attractive annual yield of 7.49% PEER YIELD COMPARISON 2 8.37% 7.49%3 5.20% 5.14% 4.78% 6.10%1 4.33% 3.82% 3.61% 3.56% 4.50%1 2.85%1 EPF Fixed Deposit 5- MGS 10-Yr Sentral KIP IGB Axis Pavilion Hektar CLMT Sunway Peer Average Yr Note: 1. Sou
Slide 11: Healthy Balance Sheet
HEALTHY BALANCE SHEET AS AT 30 SEPTEMBER 2022 Unaudited Audited RM'000 As at 30 September 2022 As at 30 June 2022 Investment Properties 852,685 852,000 Cash and cash equivalents 82,033 30,994 Other assets 10,071 6,041 Total Assets 944,789 779,035 Borrowings 310,750 312,913 Other liabiliities 22,086
Slide 12: KIP REIT Debt Profile
KIP REIT DEBT PROFILE AS AT 30 SEPTEMBER 2022 Fixed and Floating Rate Debt Maturity Profile 210 32% Fixed rate Floating rate 68% 100 0 2023 2024 ▪ Total borrowings drawn down RM310.8 million Rated MTN 0 210 ▪ 68% of borrowings are on fixed rate; 32% are on floating rate. Unrated MTN 0 100 ▪ Weighted
Slide 13: Portfolio Updates
Portfolio Updates AEON MALL KINTA CITY
Slide 14: Portfolio Summary
PORTFOLIO SUMMARY One stop destination suburban malls that serve its Perlis communities KIPMall Senawang Kedah Valuation: RM27.0m LA: 116,919 sq ft Portfolio Pulau Pinang Occupancy: 85.5% Valuation: RM852.0m Kelantan LA 1 : 1.49 million sq ft Terengganu No. of tenancies 1: 785 Perak AEON MALL Kinta
Slide 15: Portfolio Average Occupancy Rate
PORTFOLIO AVERAGE OCCUPANCY RATE FY2019 FY2020 FY2021 Q1FY2022 Q2FY2022 Q3FY2022 Q4FY2022 Q1FY2023 KIPMall Tampoi 97.7% 97.4% 88.5% 77.3% 78.0% 79.3% 87.4% 92.2% KIPMall Kota Tinggi 91.3% 92.8% 88.0% 90.1% 91.4% 92.2% 91.9% 92.2% KIPMall Masai 93.7% 95.4% 88.9% 87.9% 91.3% 92.9% 93.4% 93.2% KIPMall
Slide 16: Portfolio Lease Expiry Profile
PORTFOLIO LEASE EXPIRY PROFILE Lease expiry as at 30 September 2022 FY2023 FY2024 FY2025 FY2026 Number of leases expiring 489 267 26 3 Leased area expiring (sq. ft.) 361,769 340,162 109,849 537,035 Expires as % of occupied NLA 26.8% 25.2% 8.1% 39.8% Expires as % of gross rental income 39.8% 27.8% 6.
Slide 17: Acquisitions
Acquisitions KIPMall – KOTA TINGGI
Slide 18: Acquisitions: Approved acquisition of industrial properties
ACQUISITIONS Approved acquisition of 3 industrial properties ▪ Purchase price consideration : RM78.7 million. ▪ Estimated completion date : Second quarter of the calendar year 2023 ▪ Proposed leases tenure : 15 years Klang Property 1 Klang Property 2 Klang Property 3 Vendor Hextar Chemicals S/B (HCS
Slide 19: Acquisitions: Rationale of the acquisitions
ACQUISITIONS Rationale of the acquisitions 1. Strategic location of the Klang Properties ▪ Easily accessible to major highways ▪ Strong demand for industrial properties in this location and limited supply ▪ Support industries within the Pulau Indah Industrial Park 2. Enhances portfolio diversificati
Slide 20: Outlook and Moving Forward
Outlook and Moving Forward KIPMall - BANGI
Slide 21: Outlook
OUTLOOK 1. Malaysia Retail Industry ▪ Retail Group Malaysia (RGM) expects the retail industry in Malaysia to grow by 31.7% in 2022, in line with the firm recovery of the nation’s retail industry since the beginning of the year. ▪ Footfall across shopping malls has picked up with visible traffic cong
Slide 22: Moving Forward
MOVING FORWARD 1. Diversification of Portfolio ▪ Completed Private Placement exercise to raise RM59.9 million with the issuance of 73.65 million units at RM0.805 (tranche 1) and RM0.835 (tranche 2) per Placement Unit to part-finance the three acquisitions and to part-finance the KIPMall Bangi faceli
Slide 23: Appendix – Asset Portfolio
Appendix – Asset Portfolio KIPMall - MASAI
Slide 24: Asset Portfolio: KIPMall Tampoi
ASSET PORTFOLIO Lot PTD 152711, Jalan Titiwangsa 1, Taman Tampoi Address / Location Indah, 81200 Johor Bahru Property type Retail centre KIPMall - TAMPOI Description Single-storey retail centre with a mezzanine floor Tenure 99 years Age of property 19 years Land area 452,191 sq ft (approx. 10.38 acr
Slide 25: Asset Portfolio: KIPMall Kota Tinggi
ASSET PORTFOLIO No 1, Jalan Maju, 81900 Kota Tinggi, Johor Darul Address / Location Takim Property Type Retail centre Description Single-storey retail centre with a mezzanine floor KIPMall – KOTA TINGGI Tenure Freehold Age of Property 15 years Land area 168,111 sq ft (approx. 3.86 acres) Lettable Ar
Slide 26: Asset Portfolio: KIPMall Masai
ASSET PORTFOLIO KIPMall Masai, Jalan Persiaran Dahlia 2, Taman Bukit Address / Location Dahlia, 81700 Pasir Gudang, Johor Property Type Retail centre KIPMall - MASAI Description Single-storey retail centre with a mezzanine floor Tenure 99 years Age of Property 12 years Land Area 472,757 sq ft (appro
Slide 27: Asset Portfolio: KIPMall Senawang
ASSET PORTFOLIO No. 1, Jalan KLS 1, Lavender Heights, 70450 Seremban, Address / Location Negeri Sembilan Darul Khusus Property Type Retail centre KIPMall – SENAWANG Description Single-storey retail centre with a mezzanine floor Tenure Freehold Age of Property 10 years Land area 438,414 sq ft (approx
Slide 28: Asset Portfolio: KIPMall Melaka
ASSET PORTFOLIO No. 8999, Jalan Tun Fatimah, Batu Berendam, 75350 Address / Location Melaka Property Type Retail centre Description Two-storey retail centre KIPMall - MELAKA Tenure 99 years Age of Property 9 years Land area 380,310 sq ft (approx. 8.73 acres) Lettable Area 187,841 sq ft Average gross
Slide 29: Asset Portfolio: KIPMall Bangi
ASSET PORTFOLIO Address / Location No. 1, Jalan Medan Bangi, 43650 Bangi, Selangor Property Type Shopping Centre Description Five-storey shopping centre with a mezzanine floor KIPMall - BANGI Tenure 99 years Age of Property 23 years Land Area 92,817 sq ft (approx. 2.13 acres) Lettable Area 257,981 s
Slide 30: Asset Portfolio: AEON Mall Kinta City
ASSET PORTFOLIO 2, Jalan Teh Lean Swee, Taman Ipoh Selatan, 31400 Ipoh, Address / Location Perak Property Type Shopping Centre AEON MALL KINTA CITY Description Four-storey shopping centre Tenure Freehold Age of Property 25 years Land Area 648,310 sq ft (approx. 15 acres) Lettable Area 530,181 sq ft
Slide 31: Cautionary Statement
CAUTIONARY STATEMENT This presentation is intended to focus on matters which are relevant to the interests of stock analysts and shareholders (existing and potential) in KIP REIT. The purpose of this presentation is to provide relevant information to assist in the process of assessing the strategies
Slide 32: Q&A
Q&A
Slide 33: KIP REIT
KIP REIT Unit B-6, Block B, Tingkat 6, Menara KIP, No.1, Jalan Seri Utara 1, Sri Utara Off Jalan Ipoh, 68100 Kuala Lumpur. Tel : 603 6259 1133 Tel : +603 6258 8919 ir@kipreit.com.my
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