news

KLCC Stapled Group 2Q net profit drops as retail, hotel segments heave under MCO

KUALA LUMPUR (Aug 6): KLCC Stapled Group saw its net profit for the second quarter ended June 30, 2020 (2QFY20) fall by 22.68% to RM140.46 million from the RM180.38 million a year ago due to the sharp decline in the performance of its hotel and retail segments following the implementation of the Movement Control Order (MCO).

The stapled security, which is composed of KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust (REIT), also posted a 23.88% decline in revenue to RM267.25 million, from RM351.09 million last year.

Its cumulative net profit for the first six months fell 12.9% to RM317.34 million from RM364.33 million a year ago, underpinned by a 11.74% decline in revenue to RM621.84 million from RM704.54 million in the corresponding period.

The stapled security has declared a second interim income distribution of 7.5 sen per stapled security — 6.09 sen from KLCC REIT and 1.41 sen from KLCC Property Holdings.

This brings KLCC Stapled Group's income distribution for the first half of the year to 15.8 sen per stapled security.

Via a statement, it noted that its retail segment, which includes Suria KLCC and Menara 3 Petronas, saw 41.4% and 50% year-on-year declines in revenue and profit before tax following the provision of rental assistance to tenants and lower internal digital advertising income.

It noted that Suria KLCC has seen a gradual increase in customer footfall, viewing that as surrounding offices and international travel reopen, more people will visit the mall.

Meanwhile, the hotel segment — mainly represented by the Mandarin Oriental Hotel Kuala Lumpur — slipped into a loss of RM20.4 million.

This is as hotel occupancy and demand for event space plummeted following the implementation of the MCO and halt in international travel globally.

The hotel is intensifying digital marketing efforts to capture domestic tourism through locally designed staycation packages and advance purchase programmes.

KLCC Property Holdings chief executive officer Datuk Hashim Wahir said the reopening of its business is a positive sign towards its recovery, it will continue to focus on creating long-term value for its stapled security holders.

"While we continue navigating the challenges, our priority has always been to protect the health and safety of our people, tenants, customers and hotel guests and ensuring compliance to the guidelines set out under the Covid-19 standard operating procedures," he said.

The stapled security finished 0.26% or two sen higher at RM7.78, valuing it at some RM14.05 billion. It saw 653,400 shares done.

Stay safe. Keep updated on the latest news at www.EdgeProp.my 

Click here for more property stories.

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.
SHARE
RELATED POSTS
  1. Muhyiddin: MCO may have to be reimposed if Covid-19 cases rise sharply
  2. Court sets Oct 26 to hear Synergy Promenade's suit against Shahrir Samad
  3. Foreign spouses, children of Malaysians can now apply to come back