KIP REIT REAL ESTATE INVESTMENT TRUST (1169638-M)

INVESTMENT POLICY

KIP REIT is a 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. The nature of KIP REIT’s investment shall be long-term, with a period of at least five years, with a focus towards community-centric retail centres. Any material change to the investment policy of KIP REIT must be approved by the Unitholders.

INVESTMENT OBJECTIVE

The Manager’s key objective is to provide Unitholders with regular and stable distributions, sustainable long term Unit price, Distributable Income and capital growth, while maintaining an appropriate capital structure.

KEY INVESTMENT STRATEGIES

The Manager intends to increase the income and consequently, the value of the Subject Properties by implementing the following strategies, including:

  1. Active asset management and enhancement strategy – The Manager will seek to optimise the rental rates, occupancy rates and LA of the Subject Properties in order to improve the returns from KIP REIT’s property portfolio;
  2. Acquisition growth strategy – The Manager will source for and acquire properties that fit within KIP REIT’s investment strategy to enhance returns to Unitholders and capitalise on opportunities for future income and NAV growth. To support this acquisition strategy, the Manager expects to benefit from the Call Option and/or ROFR provided by the Promoters over the Promoters’ existing and future retail properties in Malaysia;
  3. Capital and risk management strategy – The Manager will endeavour to employ an appropriate mix of debt and equity in financing acquisitions and will seek to manage financing and refinancing risks with the intention of maximising returns to Unitholders.