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KLCC Stapled posts first quarterly loss on impairment and fair value changes on investment properties

KUALA LUMPUR (Jan 27): KLCC Stapled Group posted its first ever quarterly net loss on record after impairment and fair value changes on investment properties weighed on its financials.

It posted a net loss of RM41.84 million for the fourth quarter ended Dec 31, 2020 (4QFY20), compared with a net profit of RM156.66 million in the preceding quarter and a net profit of RM244.41 million in 4QFY19.

In a filing today, the stapled security, which includes KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust (REIT), attributed the loss to a fair value loss on investment properties of RM142.34 million and an RM81.4 million impairment of its ongoing development of Kompleks Dayabumi Phase 3.

Quarterly revenue declined 2.53% to RM304.71 million from RM312.6 million in 3QFY20, and was down 16.51% compared with RM364.96 million in 4QFY19.

The group declared an income distribution of 6.7 sen per staple security (5.7 sen from KLCC REIT and one sen from KLCC Property Holdings), versus 11.6 sen a year earlier. This brings total distribution for FY20 to 30 sen, compared with 38 sen for FY19.

KLCC Stapled Group said full-year net profit slumped 45.31% to RM432.17 million, from RM790.15 million in FY19. Revenue fell 12.92% to RM1.24 billion from RM1.42 billion.

The group said in a statement that its office segment, which includes the Petronas Twin Towers, Menara 3 Petronas, Menara ExxonMobil and Menara Dayabumi, contributed to 48% of its total revenue for FY20.

Meanwhile, its retail segment's (Suria KLCC and the retail podium of Menara 3 Petronas) FY20 revenue declined 19.6% to RM413.8 million, with profit before tax down 26% to RM290.4 million. Suria KLCC had an occupancy rate of 97% as at the end of FY20.

KLCC Stapled Group said the decline in segmental earnings was due to tenant support measures and the different phases of the Movement Control Order.

Under the hotel segment, Mandarin Oriental Kuala Lumpur's revenue plunged 70.2% amid the mandatory closure and pandemic restrictions put in place.

On its prospects, the group said it remains hopeful and looks forward to a better FY21. Expecting the hotel segment to continue to operate in a challenging environment, it said it will focus on the domestic market before the border reopens for international arrivals.

"Despite this extremely difficult period, we will continue to engage across our stakeholder groups and collaborate with our partners, tenants and business community to weather the crisis and sustain our presence in the market.

"With the acceleration of our digital journey, we will enable effective digital solutions in driving excellence in our operations and creating an experiential experience for our customers at KLCC The Place," said KLCC Property Holdings chief executive offier Datuk Hashim Wahir.

 

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