KLCCP Stapled Group 2Q net profit up slightly

KUALA LUMPUR (Aug 16): KLCC Property Holdings Bhd (KLCCP) and KLCC Real Estate Investment Trust (REIT), collectively known as KLCCP Stapled Group, reported a slight increase in net profit in the second quarter ended June 30, 2017 (2QFY17) to RM177.96 million from RM177.86 million a year ago, driven by earnings growth from the office and retail segments.

Earnings per stapled security were at 9.86 sen in 2QFY17 compared with 9.85 sen in 2QFY16.

Quarterly revenue also grew by a marginal 0.8% to RM337.52 million in 2QFY17 from RM334.57 million in 2QFY16.

The group also declared a second interim income distribution of 8.6 sen per stapled security totalling RM155.26 million for the financial year ending Dec 31, 2017 (FY17), payable on Oct 4. Out of this, dividend declared under KLCCP was 3.16 sen and KLCC REIT 5.44 sen.

This brings the distribution per stapled security to 17.2 sen for the first half of FY17 (1HFY17).

For 1HFY17, KLCCP Stapled Group’s net profit fell slightly by 1.7% to RM354.68 million from RM360.62 million a year ago, even though revenue increased slightly to RM674.18 million from RM669.32 million in 1HFY16.

Going forward, KLCCP Stapled Group said it expects the overall performance of the group for the year to remain stable, primarily backed by the long-term tenancy agreements of the office segment.

“The retail and hotel segments are expected to continue trading in challenging market conditions with the refurbishment of the hotel guest rooms still ongoing,” it added.

KLCCP Stapled Group units closed 12 sen or 1.54% higher at RM7.92 yesterday, for a market capitalisation of RM14.08 billion.

This article first appeared in The Edge Financial Daily, on Aug 16, 2017.

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