TA Securities says it came away from KIP REIT’s 1QFY24 results briefing feeling upbeat about the trust’s near-term prospects.
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00:00 TA Security said it came away from KIP Reid's first quarter FY24 results briefing, feeling
00:07 a beat about the trust's near-term prospects.
00:10 Recommendation remains a buy, though target price is now RM1.08, up from RM1.04.
00:16 The stock closed yesterday at RM0.90.
00:19 Some key takeaways.
00:20 First quarter FY24 operational performance was resilient, with average portfolio occupancy
00:26 rate increasing to 94.1%, up from 90.9% previously.
00:31 No notable vacancy risks for the year.
00:34 KIP Mall Bangi is expected to complete its facelift by the end of the year.
00:39 Occupancy rate is currently at 85%, and once renovations are done, the figure should surpass
00:44 90%.
00:45 Meanwhile, KIP Mall Kota Warisan, with a 7.9% net property income yield, is expected to
00:52 contribute from the third quarter of FY24 onwards.
00:55 The group has set a target of increasing the portfolio's value to RM1.5 billion over the
01:01 next five years.
01:02 TAE said its FY24-26 earnings forecasts have been adjusted upwards by 2% to 9% to reflect
01:10 the earnings contribution from KIP Mall Kota Warisan.
01:14 But the FY24-26 EPU and DPU are only raised by 1-6% due to the incorporation of 12.3 million
01:23 new placement units.
01:24 Quick look at consensus.
01:26 According to Bloomberg data, TAE's buy aside, we've also got a hold call from Afin Huang
01:31 Investment Bank, with a target price of 90 cen.
01:35 That takes the average target price to 99 cen, some 10% higher than KIP REIT's last
01:40 close of 90 cen.
01:42 Thanks for watching.