KUALA LUMPUR (Jan 21) — KIP Real Estate Investment Trust (KIP REIT) delivered a robust financial performance in the second quarter of its financial year 2026, driven by the contribution of newly acquired retail assets.
For the three months ended Dec 31, 2025, the retail-focused REIT reported a net property income (NPI) of RM32.41 million, representing a 49.9% increase compared with the same quarter a year earlier. The improvement was largely attributed to income generated by DPulze Shopping Centre in Cyberjaya and KIPMall Desa Coalfields in Sungai Buloh.
DPulze Shopping Centre, which was acquired in December 2024, emerged as a key contributor during the quarter, accounting for nearly RM7.1 million, or about 22%, of total NPI. Meanwhile, KIPMall Desa Coalfields, added to the portfolio in August 2025, further strengthened the REIT’s income base. Overall revenue for the quarter rose 44.9% year-on-year to RM43.47 million.
In line with its improved earnings, KIP REIT declared a distribution per unit (DPU) of 1.7 sen for the quarter, with payment scheduled for March 3.
For the six-month period ended Dec 31, 2025, NPI climbed 50.5% to RM62.13 million, while revenue increased 48.6% to RM84.24 million, reflecting the full and partial contributions of the new assets during the period.
Looking ahead, KIP REIT expects stronger retail performance in the coming quarter, supported by upcoming festive seasons and the rollout of the Sara assistance scheme in February. Chief executive officer Valerie Ong said the initiative is expected to support essential consumer spending, particularly at fresh markets and value-oriented retailers — segments that form a significant portion of the REIT’s tenant mix.
According to Ong, increased footfall, combined with the reopening of the upgraded KIPMall Tampoi and improving economic conditions, positions the REIT for continued positive momentum in the months ahead.
From a broader real estate perspective, the performance of retail-focused REITs reflects the resilience of well-located neighbourhood malls within established catchments. These assets often benefit from proximity to employment hubs, including areas near commercial property in KL, business districts around office space in Bukit Jalil, and residential communities supporting industrial property in the Subang area and factory clusters in Puchong.
As economic activity strengthens across Selangor and the Klang Valley, demand for retail services near industrial land in Selangor and growing townships is expected to remain stable, supporting income growth for landlords with defensive tenant profiles.
Units of KIP REIT closed slightly higher on Wednesday, reflecting continued investor confidence in the REIT’s expanding portfolio and income outlook.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 21 Jan 26
Malaysia