kip real estate investment trust 1st annual general meeting · kip real estate investment trust...

1st ANNUAL GENERAL MEETING

KIP Rea l Estate Investment Trust

28th SEPTEMBER 2017

Copyrights © 2017 KIP REIT | All rights reserved.

2

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)

3

ASSETS OVERVIEW


4

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


LA: 143,064 sq ft

KiP Mart Lavender SenawangEstimated market value:

RM38mLA: 114,473 sq ft

KiP Mart Melaka


LA: 182,327 sq ft

KiP Mall, Bangi


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%


5

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


6

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


Lettable area: 72,031 sq ft



Net Property Income (RM‘000): FY2017: 1,634( 5 months ended 30 Jun’17)KIP MART – KOTA TINGGI

KIP MART – MASAI





Net Property Income (RM‘000): FY2017: 5,435 (5 months ended 30 Jun’17)


7

ASSETS OVERVIEW





Net Property Income (RM‘000): FY2017: 335 (5 months ended 30 Jun’17)KIP MART LAVENDER - SENAWANG

KIP MART - MELAKA





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)




Net Property Income (RM‘000): FY2017: 4,328 (5 months ended 30 Jun’17)


8

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


Before extension After extension in November 2014

KiP Mart – Tampoi

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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



Before Acquisition After Acquisition

KiP Mart – Tampoi

Repainting of building façade Replacement of old signages and logos



KiP Mart – Kota Tinggi

11


Repainting of building façade Replacement of old signages and logos



Replacement of old signages and logos Installed additional panels for tenant advertising

KiP Mall– Bangi

12


13

FINANCIAL SUMMARY


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)

*

14

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

*** **


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

15

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.


16

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%


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


18

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]

THANK YOU !

kip real estate investment trust 1st annual general meeting · kip real estate investment trust...

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