KUALA LUMPUR (Nov 8): KLCCP Stapled Group’s net profit for the third quarter ended Sept 30, 2021 (3QFY21) declined by 13.58% to RM135.39 million from RM156.66 million a year earlier amid prolonged restrictions and imposition of the movement control order due to the exponential increase in Covid-19 cases.

The group, which comprises KLCC Property Holdings Bhd (KLCCP) and KLCC Real Estate Investment Trust (KLCC REIT), also saw its quarterly revenue fall 16.72% to RM260.34 million versus RM312.6 million, its filing with Bursa Malaysia showed.

Despite the tough performance, the group declared a dividend of seven sen per stapled security, bringing total dividends to 21 sen for the cumulative nine months ended Sept 30, 2021 (9MFY21), compared with 23.3 sen a year ago.

It noted that revenue for the office segment slipped 3.19% to RM144.94 million from RM149.72 million due to non-cash accounting adjustments following the extension of the triple net lease agreement for Menara 3 and Petronas Twin Towers in November 2020.

Revenue for the retail segment dropped 35.99% to RM68.12 million compared with RM106.42 million mainly due to higher provision of rental assistance.

Its hotel revenue also slumped 49.46% to RM5.9 million from RM11.67 million on lower occupancy of 7.3% (versus 14.4% last year); as well as lower performance in food and beverage.

Revenue for management services, which comprises facility management and car parking management services, meanwhile, decreased by 7.94% to RM58.05 million from RM63.06 million mainly due to lower revenue from car park income.

For 9MFY21, the group’s net profit fell 10.23% to RM425.52 million from RM474 million.

Revenue for 9MFY21 also declined by 11.94% to RM822.88 million versus RM934.44 million a year ago.

Amidst the ongoing challenges, the KLCCP Stapled remains cautious on the recovery post the pandemic for the rest of the year.

“The transition into Phase 4 of the NRP [National Recovery Plan] in October and the opening of all economic sectors and offices at full capacity is expected to lead to the gradual recovery of the retail and hotel segments as well as the returning of the surrounding office tenants.

“The group expects the office segment to remain stable supported by the triple net lease agreements and long-term leases,” the group said in a separate statement.

As the Covid-19 pandemic still lingers, it noted, Suria KLCC continues to prioritise the well-being of customers on top of the continuous effort to ensure tenants’ sustainability.

“Suria KLCC will capitalize on the year-end festivities, driving sales through their reward-driven campaigns. Mandarin Oriental, Kuala Lumpur reopens and [is] ready to serve guests with various promotional packages tailoring to its guests’ profile. The weekend crowd has been encouraging however, [the] pace of economic recovery towards the end of the year is anticipated to be slow,” it said.

According to the group’s chief executive officer Shah Mahmood, KLCCP Stapled will continue to focus on managing its assets and supporting its tenants in making the group’s place more sustainable.

“While we focus on recovery, we will continue to prioritise the health and safety of our people, tenants, shoppers, hotel guests and the surrounding community as we welcome them back to our premises,” he added.

KLCCP Stapled shares rose five sen or 0.75% to settle at RM6.75, translating into a market capitalisation of RM12.19 billion.

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