KIP REIT REAL ESTATE INVESTMENT TRUST (1169638-M)

FAQ ON KIP REIT

1. What is REIT?

Real Estate Investment Trusts (REITs) is an investment vehicle that proposes to invest at least 50 percent of its total assets in real estate, whether through direct ownership or a single-purpose company whose principle asset comprises of real assets. REIT has two unique features: its primary business is managing groups of income-producing properties and it must distribute most of its profits as dividends. Unlike unit trust, which is sold through agents or banks, REIT is traded in stock exchanges. So it gives investors returns through capital appreciation from price changes and dividends (just like any listed company's stock).

2. What is KIP REIT?

KIP REIT is REIT established with the principal investment policy of investing, directly and indirectly, in a portfolio of income producing Real Estate used primarily for retail purposes. KIP REIT may also invest in other investments as permissible in the REIT Guidelines or as otherwise permitted by the SC, including Real Estate-Related Assets.

3. What is the initial portfolio of KIP REIT?

The initial portfolio of KIP REIT will include five community-centric retail centres known as KiP Mart and a neighbouhood retail centre known as KiP Mall with a total valuation of RM580 million, to be acquired from KIP Development Sdn Bhd and Adamin Corporation Sdn Bhd. These assets are predominantly situated in southern states of Malaysia, namely three location in Johor, and one each in Negeri Sembilan, Melaka and Selangor.

4. Who is the manager of KIP REIT?

The manager of KIP REIT is KIP REIT Management Sdn Bhd, a wholly owned subsidiary of KIP Homes Sdn Bhd.

5. What is the initial fund size of KIP REIT?

505.3 million units.

6. How much is the distribution yield of KIP REIT?

KIP REIT is forecasting a distribution yield on retail price of 6.5% in 2017.

7. How often KIP REIT does makes an income distribution?

KIP REIT will make income distribution based on semi-annual payment. However, in certain circumstances such as the issuance of New Units by KIP REIT during the year, it may be necessary to make a special income distribution at different periods in order to attribute income distribution to existing Unitholders to avoid any income dilution from the enlarged Unitholders'capital.

8. How is this income distribution paid?

Payments are made via cheques to each Unit holder with an attached Distribution Tax Voucher detailing entitlement and gross/net amount payable.