1 st ANNUAL GENERAL MEETING. 28 th SEPTEMBER 2017

Transcription

1 KIP Real Estate Investment Trust 1 st ANNUAL GENERAL MEETING 28 th SEPTEMBER 2017

2 CORPORATE MILESTONE 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 Masai, Pasir Gudang, Johor with total lettable area of 127,270 sq feet (before extension) 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) Formation of KIP REIT on 2 November and approval of Securities Commission on 4 November 2016 Launching of IPO prospectus on 30 December Commencement of operations at KiP Mart Kota Tinggi, Johor with total lettable area of 72,031 sq feet Commencement of operations at KiP Mart Lavender Senawang, Negeri Sembilan with total lettable area of 114,473 sq feet 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 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 sen per unit on 27 April 2017 and 30 May 2017 respectively Declared a final income distribution of sen per unit on 25 July 2017 and was paid on 29 August 2017 Declared a total income distribution of sen for the financial period 2017 (6th Feb-30th Jun) 2

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4 RETAILS ASSETS WITH LONG-TERM ATTRACTIVE YIELDS 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 Description KiP Marts KiP Mall Total Pulau Pinang Perlis Kedah Perak KiP Mall, Bangi Estimated market value: Kelantan RM130m LA: 260,429 sq ft Terengganu KiP Mart Lavender Estimated Senawang market value: RM38m LA: 114,473 sq ft Appraised value 1 (RM 000) 450, , ,000 Purchase consideration (RM 000) 450, , ,291 Lettable area ( LA ) 1 (sq ft) 675, , ,735 Number of tenancies Average occupancy rate for the 5-month financial period ended 30 June 2017 (%) % 78.3% 83.28% Notes: 1. As at 30 June LA weighted average occupancy rate for KiP Marts KiP Mart Melaka Selangor Kuala Lumpur Putrajaya Estimated market value: RM50m LA: 182,327 sq ft KiP Mart Tampoi Pahang Negara Sembilan Melaka Estimated market value: RM150 m LA: 163,411 sq ft Johor 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 4

5 WELL 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 5

6 KIP MART - TAMPOI 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) 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) KIP MART KOTA TINGGI Net Property Income (RM 000): FY2017: 1,634( 5 months ended 30 Jun 17) 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) KIP MART MASAI 6

7 KIP MART LAVENDER - SENAWANG KIP MART - MELAKA 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) 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) 7

8 ASSET 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 8

9 ASSET ENHANCEMENTS KiP Mart Tampoi Before extension After extension in November 2014 Additional LA of 25,937 sq ft New tenant Courts, an electrical, digital products and furniture outlet occupies 10.5% of the LA on a tenure 9

10 ASSET ENHANCEMENTS KiP Mart Tampoi Before Acquisition After Acquisition Repainting of building façade Replacement of old signages and logos

11 ASSET ENHANCEMENTS KiP Mart Kota Tinggi Before Acquisition After Acquisition Repainting of building façade Replacement of old signages and logos 11

12 ASSET ENHANCEMENTS KiP Mall Bangi Before Acquisition After Acquisition Replacement of old signages and logos Installed additional panels for tenant advertising 12

13 FINANCIAL SUMMARY 13

14 RM 000 RM 000 Percentage FINANCIAL SUMMARY QUARTERLY FINANCIAL PERFORMANCE Revenue (RM 000) Net Property Income (RM 000) 30,000 25,000 26,350 20,000 18,000 16,000 68% 17,525 68% 68% 67% 20,000 15,000 16,042 14,000 12,000 10,000 10,863 67% 67% 66% 66% 10,000 5,000 10,308 8,000 6,000 4,000 2,000 6,662 65% 65% 65% 64% 64% - 0 Q3FP2017 * Q4FP2017 FP2017 ** Q3FP2017 * Q4FP2017 FP2017 ** Financial Quarter Financial Financial Quarter Financial Period Period Net Property Income Margin 63% * Results reported for the current quarter is from 6 February 2017 to 31 March **Financial Period is from 6 February 2017 to 30 June

15 RM 000 Percentage Sen FINANCIAL SUMMARY QUARTERLY FINANCIAL PERFORMANCE Distributable Income Distribution per unit (Sen) 16,000 14,000 14,660 70% 65% ,000 10,000 54% 57% 56% 9,134 60% 55% ,000 6,000 5,526 50% 45% ,000 2,000 - Q3FP2017 * Q4FP2017 FP2017 ** Financial Quarter Financial Period Total Comprehensive Income Margin 40% 35% 30% Q3FP2017* Q4FP2017 FP2017** Financial Quarter Financial Period * Results reported for the current 3 rd quarter were from 6 February 2017 to 31 March **Financial Period is from 6 February 2017 to 30 June

16 FINANCIAL SNAPSHOT AS AT 30 JUNE 2017 FINANCIAL SNAPSHOT AS AT 30 JUNE 2017 PEER YIELD COMPARISON 7.61% Annualised income distribution yield* based on closing price on the 25 th July- RM cent Interim income distribution per unit for the period from 6 Feb 30 June %** 100% Historical income distribution rate for FP2017 RM1.00 Net Asset Value Per Unit 5.0% 5.3% 5.5% 4.6% 4.6% 5.0% RM613 million Total Asset Value 14.2% Debt to Asset Ratio Gearing Ratio KIP REIT IGB REIT* Capitaland Malaysia Mall Trust* Sunway REIT* Pavillion REIT* KLCCP Stapled Group* KIP REIT s income yield of 7.6% is 52.0% higher than the average of its retail REIT peers at 5.0% Average (ex KiP)* *Note : Based on sen income distribution for the five month financial period annualised based on the closing price of 25 th July of RM0.92 *Note : Source: PublicInvest Research estimates report, KIP IPO note **Note : Based on sen income distribution for the five month financial period annualized based on the closing price of 25 th July of RM

17 FINANCIAL SUMMARY DISTRUBUTION POLICY Quarterly income distribution policy For the current quarter ( Q4FP17 ), the manager of KIP REIT declared an income distribution of sen per unit For the Financial Period 2017 ( FP2017 ) (6 th February 2017 to 30 th June 2017), the manager of KIP REIT declared a total income distribution Of 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

18 INVESTMENT SUMMARY KEY 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 Organic growth through rental revisions and potential for acquisitions of ROFRs and third party asset acquisitions 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 18

19 THANK YOU! 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, Kuala Lumpur. Tel Fax : : ir@kipreit.com.my