KUALA LUMPUR: KIP Real Estate Investment Trust (KIP Reit) recorded net property income (NPI) and realised profit after tax of RM13.7 million and RM8.4 million respectively for the first quarter (Q1) of its year ending June 30, 2022.

This was on the back of a gross revenue of RM17.1 million, KIP Reit manager KIP Reit Management Sdn Bhd sais in a statement today.

KIPReit Management executive director Datuk Eric Ong Kook Liong said the performance was within its expectations amid the disruptions caused by the Covid-19 pandemic.

"We welcome the news of moving the country into the endemic phase with declining trend in average daily cases and 90 per cent of the adult population being fully vaccinated. We have seen a boost in consumer confidence since and business sectors are also entering into a recovery phase with operations becoming less disrupted," he said.

Nonetheless, he said the company remained vigilant and continued to practise fiscal prudence to keep its expenses manageable.

"As witnessed in our central region, we have achieved an improved NPI as a result of better cost management implemented in the said region."

KIP Reit remains hopeful of the coming quarters, adapting to the situation appropriately for the future growth of its unit holders.

"We will also continue to evaluate viable opportunities to diversify our asset portfolios into different asset classes in the commercial and industrial assets," Ong said.

The manager of KIP Reit declared a first interim distribution per unit of 1.55 sen, amounting to RM7.8 million for Q1. This included a non-taxable portion of about 0.71 sen per unit derived from capital allowances and tax-exempt income.

The book closure and payment dates in respect of the proposed income distribution are November 5 and November 23 respectively. 

Based on its closing price of 84 sen on October 20, KIP Reit's annualised distribution per unit yielded 8.14 per cent.