KLCCP 4Q profit falls on lower fair value gain

KUALA LUMPUR (Jan 25): KLCCP Stapled Group, which comprises KLCC Property Holdings Bhd (KLCC) and KLCC Real Estate Investment Trust (KLCC REIT), announced a 47% year-on-year (y-o-y) drop in net profit to RM183.66 million in the fourth quarter ended Dec 31, 2018 (4QFY18) from RM345.52 million, mainly due a lower fair value gain on its investment properties.

*KLCC Stapled Group inks JV for first TOD

*Mohd Sidek steps down as KLCC Stapled Group chairman

*KLCCP Stapled Group's 1H net profit rises to RM414.89 mil

The fair value gain dropped to RM20.05 million in 4QFY18, from RM182.48 million a year ago. Taxation expenses, which more than doubled to RM48.87 million in 4QFY18 from RM22.64 million previously, further eroded profit.

Quarterly revenue grew 4% y-o-y to RM366.35 million from RM352.07 million, thanks to additional revenue from special projects under the facilities management operations, as well as higher rental rates coupled with higher occupancy for its retail segment.

For the full FY18, the group’s net profit fell 17.4% y-o-y to RM724.91 million from RM877.9 million, though annual revenue grew 3% to RM1.41 billion from RM1.37 billion. The group declared a fourth interim dividend/income distribution per unit of 10.9 sen, comprising a 4.63 sen dividend for KLCC and a distribution per unit of 6.27 sen for KLCC REIT, to be paid on Feb 28. The payout is 5% higher than the same period a year ago, it said in a statement.

This brings its full FY18 payout to 37 sen from 36.15 sen for FY17.

On prospects, the group said it will continue to focus on its core competencies in key market segments.

This article first appeared in The Edge Financial Daily, on Jan 25, 2019.

Click here for more property stories.