KIP Real Estate Investment Trust (KLSE:KIPREIT) - Share price, News & Analysis

Q: What is the Fair Price of KIPREIT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

KIPREIT (MYR0.88) is trading below our estimate of [[fair value]] (MYR2.13)

KIPREIT fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	4/6
Financial Health	2/6
Dividends	4/6

KIPREIT Stock Overview

Rewards

Trading at 58.7% below our estimate of its fair value

Earnings grew by 70.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 1.6% per year for the next 3 years

Debt is not well covered by operating cash flow

Unstable dividend track record

KIP Real Estate Investment Trust Competitors

Pavilion Real Estate Investment Trust

KLSE:PAVREIT

RM4.0b

Sunway Real Estate Investment Trust

KLSE:SUNREIT

RM5.0b

IGB Real Estate Investment Trust

KLSE:IGBREIT

RM5.6b

AmanahRaya Real Estate Investment Trust

KLSE:ARREIT

RM364.0m

Price History & Performance

Summary of all time highs, changes and price drops for KIP Real Estate Investment Trust
Historical stock prices
Current Share Price	RM0.88
52 Week High	RM0.92
52 Week Low	RM0.81
Beta	0.25
1 Month Change	0.57%
3 Month Change	3.53%
1 Year Change	4.76%
3 Year Change	3.53%
5 Year Change	-4.35%
Change since IPO	-11.56%

Shareholder Returns

	KIPREIT	MY REITs	MY Market
7D	-0.6%	-0.4%	-0.9%
1Y	4.8%	-2.0%	-7.7%

Return vs Industry: KIPREIT exceeded the MY REITs industry which returned -1.9% over the past year.

Return vs Market: KIPREIT exceeded the MY Market which returned -8.7% over the past year.

Price Volatility

Is KIPREIT's price volatile compared to industry and market?
KIPREIT volatility
KIPREIT Average Weekly Movement	1.5%
REITs Industry Average Movement	2.5%
Market Average Movement	5.6%
10% most volatile stocks in MY Market	11.4%
10% least volatile stocks in MY Market	2.8%

Stable Share Price: KIPREIT is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: KIPREIT's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	10	n/a	https://www.kipreit.com.my

Listed on the Main Market of Bursa Malaysia Securities Berhad (Bursa Malaysia) on 6 February 2017, KIP Real Estate Investment Trust (KIP REIT) is a retail focused property trust with a portfolio of community centric malls strategically located across the Malaysian Peninsula. The initial portfolio at listing consists of six community-centric KIPMalls strategically located in populated suburban area in Johor, Negeri Sembilan, Melaka and Selangor. As at June 30 2020, the Total Asset Under Management stood at RM841.8 million.

KIP Real Estate Investment Trust Fundamentals Summary

How do KIP Real Estate Investment Trust's earnings and revenue compare to its market cap?
KIPREIT fundamental statistics
Market Cap	RM444.66m
Earnings (TTM)	RM35.81m
Revenue (TTM)	RM73.88m

12.4x

P/E Ratio

6.0x

P/S Ratio

Is KIPREIT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KIPREIT income statement (TTM)
Revenue	RM73.88m
Cost of Revenue	RM15.98m
Gross Profit	RM57.90m
Other Expenses	RM22.09m
Earnings	RM35.81m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.071
Gross Margin	78.37%
Net Profit Margin	48.47%
Debt/Equity Ratio	60.5%

How did KIPREIT perform over the long term?

See historical performance and comparison

Dividends

7.8%

Current Dividend Yield

67%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is KIPREIT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KIPREIT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for KIPREIT. This is calculated by dividing KIPREIT's market cap by their current preferred multiple.
What is KIPREIT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM444.66m

KIPREIT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	9.8x
Enterprise Value/EBITDA	14.5x
PEG Ratio	-7.8x

Price to Earnings Ratio vs Peers

How does KIPREIT's PE Ratio compare to its peers?

KIPREIT PE Ratio vs Peers

The above table shows the PE ratio for KIPREIT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	22.5x
PAVREIT Pavilion Real Estate Investment Trust	25.3x	8.4%	RM4.0b
SUNREIT Sunway Real Estate Investment Trust	28.1x	9.5%	RM5.0b
IGBREIT IGB Real Estate Investment Trust	23.1x	8.1%	RM5.6b
ARREIT AmanahRaya Real Estate Investment Trust	13.6x	n/a	RM364.0m
KIPREIT KIP Real Estate Investment Trust	12.4x	-1.6%	RM444.7m

Forward PE

Price-To-Earnings vs Peers: KIPREIT is good value based on its Price-To-Earnings Ratio (12.4x) compared to the peer average (22.5x).

Price to Earnings Ratio vs Industry

How does KIPREIT's PE Ratio compare vs other companies in the Asian REITs Industry?

Price-To-Earnings vs Industry: KIPREIT is good value based on its Price-To-Earnings Ratio (12.4x) compared to the MY REITs industry average (18.2x)

Price to Earnings Ratio vs Fair Ratio

What is KIPREIT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KIPREIT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.4x
Fair PE Ratio	12.9x

Price-To-Earnings vs Fair Ratio: KIPREIT is good value based on its Price-To-Earnings Ratio (12.4x) compared to the estimated Fair Price-To-Earnings Ratio (12.9x).

Share Price vs Fair Value

What is the Fair Price of KIPREIT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KIPREIT (MYR0.88) is trading below our estimate of fair value (MYR2.13)

Significantly Below Fair Value: KIPREIT is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: KIPREIT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is KIP Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-1.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: KIPREIT's earnings are forecast to decline over the next 3 years (-1.6% per year).

Earnings vs Market: KIPREIT's earnings are forecast to decline over the next 3 years (-1.6% per year).

High Growth Earnings: KIPREIT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KIPREIT's revenue (1.3% per year) is forecast to grow slower than the MY market (5.2% per year).

High Growth Revenue: KIPREIT's revenue (1.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: KIPREIT's Return on Equity is forecast to be low in 3 years time (6.5%).

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Past Performance

How has KIP Real Estate Investment Trust performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-3.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KIPREIT has high quality earnings.

Growing Profit Margin: KIPREIT's current net profit margins (48.5%) are higher than last year (29.2%).

Past Earnings Growth Analysis

Earnings Trend: KIPREIT's earnings have declined by 3.6% per year over the past 5 years.

Accelerating Growth: KIPREIT's earnings growth over the past year (70.9%) exceeds its 5-year average (-3.6% per year).

Earnings vs Industry: KIPREIT earnings growth over the past year (70.9%) exceeded the REITs industry 43.9%.

Return on Equity

High ROE: KIPREIT's Return on Equity (7%) is considered low.

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Financial Health

How is KIP Real Estate Investment Trust's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: KIPREIT's short term assets (MYR32.8M) exceed its short term liabilities (MYR16.5M).

Long Term Liabilities: KIPREIT's short term assets (MYR32.8M) do not cover its long term liabilities (MYR315.1M).

Debt to Equity History and Analysis

Debt Level: KIPREIT's net debt to equity ratio (55%) is considered high.

Reducing Debt: Insufficient data to determine if KIPREIT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: KIPREIT's debt is not well covered by operating cash flow (16.4%).

Interest Coverage: KIPREIT's interest payments on its debt are well covered by EBIT (3.8x coverage).

Balance Sheet

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Dividend

What is KIP Real Estate Investment Trust current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

7.77%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KIPREIT's dividend (7.77%) is higher than the bottom 25% of dividend payers in the MY market (2.15%).

High Dividend: KIPREIT's dividend (7.77%) is in the top 25% of dividend payers in the MY market (4.94%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KIPREIT has been paying a dividend for less than 10 years.

Growing Dividend: KIPREIT has only been paying a dividend for 5 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (67.5%), KIPREIT's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (71.5%), KIPREIT's dividend payments are covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure

CEO

KIP Real Estate Investment Trust has no CEO, or we have no data on them.

Leadership Team

Experienced Management: KIPREIT's management team is seasoned and experienced (5.3 years average tenure).

Board Members

Experienced Board: KIPREIT's board of directors are considered experienced (4.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30