Positive momentum continues for KLCCP Stapled Group

KUALA LUMPUR: KLCCP Stapled Group expects the positive momentum to continue into the next quarter with the resurgence of domestic and international MICE activities, events and tourism.

In a statement, the group, which comprises KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust (REIT), said the retail segment is well-positioned for continued growth with a strategy in place coupled with a vibrant mix of well-curated tenants.

“The group remains confident to adapt to market conditions towards sustainable growth despite inflationary pressures and rising costs and expects its performance to remain stable heading into the second half of the year,” it said.

For the second quarter of the financial year, KLCC Stapled Group posted a net profit of RM180.8mil, which was up from RM165.18mil in the previous corresponding quarter.

The group’s earnings per share was 10.01 sen as compared to 9.15 sen in the comparative quarter.

Revenue meanwhile rose to RM394.64mil from RM350.31mil in 2QFY22, driven by improved performance across all its business segments, especially in hospitality and management services.

The board of directors declared a dividend of 8.8 sen per stapled security, which brings the year-to-date payout to 17.3 sen.

“Following the encouraging performance in quarter one, we continued our focus on operational excellence, capitalising on the upsurge in tourism, MICE activities, increasing consumer demand for events and the improving economic climate,” said group CEO Datuk Md Shah Mahmood.

He noted that the hotel segment, represented by Mandarin Oriental Kuala Lumpur, continued to record a robust performance during the quarter with topline jumping 39.2% year-on-year (y-o-y) on the back of higher occupancy.

The management services segment comprising the facilities management and car park management services saw a jump in pre-tax profit by 43.7% and 33.3% respectively on maintenance activities undertaken and improved car park revenue.

In the retail segment, comprising Suria KLCC and the retail podium of Menara 3 PETRONAS, revenue rose 2.6% y-o-y to RM128.5mil while pre-tax profit improved to RM97.2mil.

The office segment remained stable with the triple net lease arrangement and long-term leases of its office assets, namely PETRONAS Twin Towers, Menara 3 PETRONAS, Menara ExxonMobil and Menara Dayabumi.