1st ANNUAL GENERAL MEETING
KIP Rea l Estate Investment Trust
28th SEPTEMBER 2017
Copyrights © 2017 KIP REIT | All rights reserved.
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CORPORATE MILESTONE
2017
2016
2015
2014
2012
2011
2008
2004
• Commencement of operations at KiP Mart Tampoi, Johor Bahru with total lettable area of 137,474 sq feet (before extension)
• Commencement of operations at KiP Mart Kota Tinggi, Johor with total lettable area of 72,031 sqfeet
• Commencement of operations at KiP Mart Masai, Pasir Gudang, Johor with total lettable area of 127,270 sq feet (before extension)
• Commencement of operations at KiP Mart Lavender Senawang, Negeri Sembilan with total lettable area of 114,473 sq feet
• Commencement of operations at KiP Mart Melaka with a lettable area of 182,327 sq feet
• Extension of KiP Mart Tampoi, increased area by 25,937 sq feet to accommodate an anchor tenant, Courts (163,411 sq feet after extension)
• Extension of KiP Mart Masai, increased lettable area by 15,794 sq feet (143,064 sq feet after extension).
• Installation of solar photovoltaic system on the rooftop in KiP Mart Masai
• Acquisition of KiP Mall Bangi in March with total lettable area of 260,429 sq feet
• Formation of KIP REIT on 2 November and approval of Securities Commission on 4 November 2016
• Launching of IPO prospectus on 30 December 2016
• Successfully listed on the Main Market of Bursa Malaysia on 6 Feb 2017
• Change in distribution policy from semi-annually to quarterly basis
• Declared and paid an interim income distribution of 1.000 sen per unit on 27 April 2017 and 30 May 2017 respectively
• Declared a final income distribution of 1.918 sen per unit on 25 July 2017 and was paid on 29 August 2017
• Declared a total income distribution of 2.918 sen for the financial period 2017 (6th Feb-30th Jun)
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ASSETS OVERVIEW
Copyrights © 2017 KIP REIT | All rights reserved.
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ASSETS OVERVIEWRETAILS ASSETS WITH LONG-TERM ATTRACTIVE YIELDS
Kedah
Selangor
Kuala Lumpur
Perak
Perlis
Kelantan
Pahang
Putrajaya
Terengganu
Johor
Melaka
KiP Mart Tampoi
Estimated market value: RM150 m
LA: 163,411 sq ft
KiP Mart Kota Tinggi
Estimated market value: RM55m
LA: 72,031 sq ft
KiP Mart Masai
Estimated market value: RM157m
LA: 143,064 sq ft
KiP Mart Lavender SenawangEstimated market value:
RM38mLA: 114,473 sq ft
KiP Mart Melaka
Estimated market value: RM50m
LA: 182,327 sq ft
KiP Mall, Bangi
Estimated market value: RM130m
LA: 260,429 sq ft
Negara Sembilan
PulauPinang
Characteristics of KIP REIT: 5 KiP Mart properties – a hybrid between traditional fresh market
and your local community-centric retail centre KiP Mall – your neighborhood conventional shopping mall All assets are strategically located at the suburbs and mainly
concentrated on residential, commercial and industrial areas Assets are located across the southern and central region, each with
a 5 km radius catchment areas
Notes:1. As at 30 June 20172. LA weighted average occupancy rate for KiP Marts
Description KiP Marts KiP Mall Total
Appraised value1 (RM 000) 450,000 130,000 580,000
Purchase consideration (RM 000) 450,291 130,000 580,291
Lettable area (“LA”)1 (sq ft) 675,306 260,429 935,735
Number of tenancies1 819 156 975
Average occupancy rate for the 5-month financial period ended 30 June 2017 (%) 2 85.2% 78.3% 83.28%
Copyrights © 2017 KIP REIT | All rights reserved.
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ASSETS OVERVIEWWELL ESTABLISHED ONE-STOP COMMUNITY MARKET
KiP Mart – First established in 2002
Opening hours from 10am to 10pm
KiP Mall – 5-storey shopping centre
Well established one-stop community centric retail centres
Diversified tenants in these trade sectors:• Fresh market• Supermarket• Household products, gifts and stationery • Electrical and digital products• Furniture and show gallery• Fashion and apparel
Strong dynamics and synergies between the local community
Supports local small and medium traders
Leases the stalls, shop-lots or promotion space to traders and tenants
High shopper traffic:• Longer fresh market hours• Weekly/bimonthly programmes, events and activities • Located close to major residential, commercial and industrial areas
KiP Mart and KiP Mall – community-centric and neighborhood focused retail centres
Copyrights © 2017 KIP REIT | All rights reserved.
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ASSETS OVERVIEW
Age of Property: 13 years
Lettable area: 163,411 Sq ft
Market Value: RM150,000,000 as at 30 June 2017
Average Occupancy rate: FY17: 94.0% (5 month ended 30 Jun ‘17)
Net Property Income (RM‘000): FY2017: 5,055 (5 months ended 30 Jun’17)KIP MART - TAMPOI
Age of Property: 9 years
Lettable area: 72,031 sq ft
Market Value: RM55,000,000 as at 30 June 2017
Average Occupancy rate: FY17: 93.9% (5 month ended 30 Jun ‘17)
Net Property Income (RM‘000): FY2017: 1,634( 5 months ended 30 Jun’17)KIP MART – KOTA TINGGI
KIP MART – MASAI
Age of Property: 6 years
Lettable area: 143,064 sq ft
Market Value: RM157,000,000 as at 30 June 2017
Average Occupancy rate: FY17: 89.8% (5 month ended 30 Jun ‘17)
Net Property Income (RM‘000): FY2017: 5,435 (5 months ended 30 Jun’17)
Copyrights © 2017 KIP REIT | All rights reserved.
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ASSETS OVERVIEW
Age of Property: 4 years
Lettable area: 114,473 sq ft
Market Value: RM38,000,000 as at 30 June 2017
Average Occupancy rate: FY17: 77.7% (5 month ended 30 Jun ‘17)
Net Property Income (RM‘000): FY2017: 335 (5 months ended 30 Jun’17)KIP MART LAVENDER - SENAWANG
KIP MART - MELAKA
Age of Property: 3 years
Lettable area: 182,327 sq ft
Market Value: RM50,000,000 as at 30 June 2017
Average Occupancy rate: FY17: 75.4% (5 month ended 30 Jun ‘17)
Net Property Income (RM‘000): FY2017: 738 (5 months ended 30 Jun’17)
KIP MALL - BANGI
Age of Property: 17 years (acquired in March 2015)
Lettable area: 260,429 sq ft
Market Value: RM130,000,000 as at 30 June 2017
Average Occupancy rate: FY17: 78.3% (5 month ended 30 Jun ‘17)
Net Property Income (RM‘000): FY2017: 4,328 (5 months ended 30 Jun’17)
Copyrights © 2017 KIP REIT | All rights reserved.
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ASSETS OVERVIEWASSET ENHANCEMENTS
KiP Mart – Masai
Before extension After extension in November 2015
Additional LA of 15,794 sq ft After the extension, KiP Mart Masai now includes:
2 concourses for events, New F&B outlets, and Digital space
Also implemented solar photovoltaic system on the rooftop which resulted in average savings of about 20% on utility costs per month
Copyrights © 2017 KIP REIT | All rights reserved.
Before extension After extension in November 2014
KiP Mart – Tampoi
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ASSETS OVERVIEWASSET ENHANCEMENTS
Additional LA of 25,937 sq ftNew tenant – Courts, an electrical, digital products and furniture outlet occupies 10.5% of the LA on a 3+3+3 tenure
Copyrights © 2017 KIP REIT | All rights reserved.
ASSETS OVERVIEWASSET ENHANCEMENTS
Before Acquisition After Acquisition
KiP Mart – Tampoi
Repainting of building façade Replacement of old signages and logos
Copyrights © 2017 KIP REIT | All rights reserved.
Before Acquisition After Acquisition
KiP Mart – Kota Tinggi
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ASSETS OVERVIEWASSET ENHANCEMENTS
Repainting of building façade Replacement of old signages and logos
Copyrights © 2017 KIP REIT | All rights reserved.
Before Acquisition After Acquisition
Replacement of old signages and logos Installed additional panels for tenant advertising
KiP Mall– Bangi
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ASSETS OVERVIEWASSET ENHANCEMENTS
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FINANCIAL SUMMARY
Copyrights © 2017 KIP REIT | All rights reserved.
6,662
10,863
17,525
65%
68%
67%
63%
64%
64%
65%
65%
66%
66%
67%
67%
68%
68%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Q3FP2017 Q4FP2017 FP2017
Pe
rcen
tage
RM
’00
0
Financial Quarter
Net Property Income (RM’000)
Net Property Income Margin
10,308
16,042
26,350
-
5,000
10,000
15,000
20,000
25,000
30,000
Q3FP2017 Q4FP2017 FP2017
RM
’00
0
Financial Quarter
Revenue (RM’000)
*
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FINANCIAL SUMMARYQUARTERLY FINANCIAL PERFORMANCE
* Results reported for the current quarter is from 6 February 2017 to 31 March 2017.**Financial Period is from 6 February 2017 to 30 June 2017.
Financial Period
Financial Period
*** **
Copyrights © 2017 KIP REIT | All rights reserved.
5,526
9,134
14,660
54%
57% 56%
30%
35%
40%
45%
50%
55%
60%
65%
70%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Q3FP2017 Q4FP2017 FP2017Pe
rcen
tage
RM
’00
0
Financial Quarter
Distributable Income
Total Comprehensive Income Margin
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FINANCIAL SUMMARYQUARTERLY FINANCIAL PERFORMANCE
1.0
1.9
2.9
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Q3FP2017 Q4FP2017 FP2017
Sen
Financial Quarter
Distribution per unit (Sen)
**
Financial Period
Financial Period
****
* Results reported for the current 3rd quarter were from 6 February 2017 to 31 March 2017.**Financial Period is from 6 February 2017 to 30 June 2017.
Copyrights © 2017 KIP REIT | All rights reserved.
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FINANCIAL SNAPSHOTAS AT 30 JUNE 2017
FINANCIAL SNAPSHOT AS AT 30 JUNE 2017
*Note : Based on 2.918 sen income distribution for the five month financial period annualised based on the closing price of 25th July of RM0.92
PEER YIELD COMPARISON
7.6%**
5.0%5.3% 5.5%
4.6% 4.6%5.0%
KIP REIT IGB REIT* CapitalandMalaysia Mall
Trust*
Sunway REIT* Pavillion REIT* KLCCP StapledGroup*
Average(ex KiP)*
*Note : Source: PublicInvest Research estimates report, KIP IPO note**Note : Based on 2.918 sen income distribution for the five month financial period annualized based on the closing price of 25th July of RM0.92
2.918 centInterim income distribution per unit for the period from 6 Feb –30 June ‘17
RM1.00Net Asset Value Per Unit
100%Historical income distribution rate for FP2017
7.61%Annualised income distribution yield* based on closing price on the 25th July- RM0.92
RM613 millionTotal Asset Value
14.2%Debt to Asset Ratio Gearing Ratio KIP REIT’s income yield of 7.6% is 52.0% higher than the
average of its retail REIT peers at 5.0%
Copyrights © 2017 KIP REIT | All rights reserved.
17
FINANCIAL SUMMARYDISTRUBUTION POLICY
Quarterly income distribution policy
For the current quarter (“Q4FP17”), the manager of KIP REIT declared an income distribution of 1.918 sen per unit
For the Financial Period 2017 (“FP2017”) (6th February 2017 to 30th June 2017), the manager of KIP REIT declared a total income distribution Of 2.918 sen per unit
Annualised income distribution yield for FP2017 amounted to 7.61%
based on the KIP REIT closing price of RM0.92 as at 25 July 2017
Copyrights © 2017 KIP REIT | All rights reserved.
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INVESTMENT SUMMARYKEY INVESTMENT MERITS
High dividend yield of 7.61% based on unit price of RM0.92 which is higher than the average Malaysian retail REIT yield of 5.0%
Resilient earnings from strategic business model with targeting mass market consumers with assets geographically diversified
Low gearing of 14% which is below the 50% limit for REITs which allows for further borrowings of up to RM220 million for asset acquisitions
Highly skilled and experienced management team ensuring that KIP REIT performs optimally
Organic growth through rental revisions and potential for acquisitions of ROFRs and third party asset acquisitions
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KIP REAL ESTATE INVESTMENT TRUST
Unit B-6, Block B, Tingkat 6, Menara KIP, No.1, Jalan Seri Utara 1, Sri Utara Off Jalan Ipoh, 68100 Kuala Lumpur.
TelFaxEmail
: +603 6259 1133: +603 6258 8919: [email protected]
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