Kuala Lumpur, 21 January 2026 – KIP Real Estate Investment Trust delivered a standout financial performance for the second quarter and first half of its financial year ended 31 December 2025, underpinned by robust retail momentum, disciplined cost management and the accretive impact of recent strategic acquisitions.
For Q2FY2026, KIP REIT’s gross revenue jumped 44.9% year-on-year to RM43.5 million, while net property income (NPI) rose 49.9% to RM32.4 million. Profit after tax (PAT) surged 46.2% to RM17.5 million, reflecting the Group’s expanding income base and improving asset quality. Total distributable income for the quarter climbed 44.6% to RM17.8 million.
The strong quarterly performance was driven primarily by the central region retail portfolio, where revenue more than doubled, surging 110.7% to RM21.3 million. This was led by the continued outperformance of DPulze Shopping Centre, which contributed RM7.1 million, accounting for approximately 50.9% of central region NPI, alongside the earnings contribution from the newly acquired KIPMall Desa Coalfields.
First Half FY2026: Broad-Based Growth Across the Portfolio
For the first half of FY2026, KIP REIT recorded gross revenue of RM84.2 million, an increase of 48.6% year-on-year, while NPI expanded 50.5% to RM62.1 million. PAT for the six-month period climbed 57.6% to RM34.8 million, supported by higher portfolio occupancy, effective cost controls and growing income from the Group’s industrial assets.
Total distributable income for the first half rose 55.5% to RM35.4 million, highlighting the REIT’s strengthening cash flow profile and earnings sustainability.
Retail Resilience and Festive Tailwinds
Chief Executive Officer Ms Valerie Ong said the results reflected the success of KIP REIT’s strategy of focusing on high-yield, community-centric assets.
“Our retail assets, particularly in the central region, continue to form the backbone of our portfolio, delivering stable and growing income streams. With Thaipusam, Chinese New Year and Hari Raya ahead, together with the rollout of the SARA scheme in February, we expect stronger footfall across our malls,” she said.
The SARA scheme, which supports essential spending categories such as fresh markets and value retailers, directly benefits KIP REIT’s core tenant mix and is expected to drive repeat visits and higher tenant sales.
Asset Enhancement and Forward Growth Pipeline
Looking ahead, KIP REIT remains focused on active asset management and the completion of key asset enhancement initiatives (AEI). The grand reopening of KIPMall Tampoi on 8 February 2026 marks the successful completion of its AEI programme, which includes enhanced functionality, an improved tenant ecosystem and the installation of a new footfall tracking system.
“These enhancements create a more welcoming environment for shoppers and the surrounding community. Supported by a strong pipeline and a strengthened capital base, we remain confident in our ability to deliver sustainable growth and long-term value to unitholders,” Ong added.
Distribution and Yield
The Manager of KIP REIT has proposed a third income distribution per unit (DPU) of 1.7 sen for Q2FY2026, payable on 3 March 2026. This brings total year-to-date distribution to 3.50 sen per unit.
Based on the closing market price of RM0.93 as at 21 January 2026, KIP REIT’s trailing twelve-month distribution yield stands at 7.6%, reinforcing its appeal as a defensive income play amid a volatile macroeconomic environment.
