KLCCP Stapled Group reports marginal increase in 1Q earnings, pays 9 sen dividend

• On prospects for the quarters ahead, KLCC Stapled Group said Suria KLCC maintains a positive outlook despite heightened competition, while Mandarin Oriental is strategically positioned to leverage the favourable economic climate, strengthening its collaboration with KLCC precinct partners.

KUALA LUMPUR (May 23): KLCCP Stapled Group (KL:KLCC) registered a 4.1% increase in net profit for the first quarter ended March 31, 2024 (1QFY2024) to RM188.03 million from RM180.56 million a year earlier, on the back of steady performance across its business segments.

The group — comprising KLCC Property Holdings Bhd (KLCCP) and KLCC Real Estate Investment Trust (KLCC REIT) — saw quarterly revenue rising 7.4% to RM408.9 million from RM380.74 million, its Thursday bourse filing showed.

Earnings per stapled security stood at 10.42 sen, up from 10 sen previously. The group declared a dividend of nine sen per stapled security for the quarter, 5.9% higher than the same period last year, payable on June 28.

The group’s retail property investment segment, which comprises Suria KLCC and the retail podium of Menara 3 Petronas, posted a 9.3% rise in profit before tax (PBT) to RM108.94 million from RM99.66 million previously, mainly due to an upward revision in base rents, and an improvement in occupancy.

Its hotel segment, Mandarin Oriental KL, bounced back to the black at the pre-tax level with a PBT of RM1.76 million versus a loss before tax of RM2.31 million in 1QFY2023, on the back of higher average room rates and occupancy. A rise in food and beverage covers, banqueting and group and social events also lifted the segment's performance.

Its office segment remained largely stable, with PBT seeing a marginal uptick from RM120.6 million to RM120.8 million, backed by the triple net lease arrangement and long-term leases in Petronas Twin Towers, Menara Petronas, Menara ExxonMobil and Menara Dayabumi. Its management services business, likewise, was steady, with PBT rising 4% to RM19.9 million.

On prospects for the quarters ahead, KLCC Stapled Group said Suria KLCC maintains a positive outlook despite heightened competition, while Mandarin Oriental is strategically positioned to leverage the favourable economic climate, strengthening its collaboration with KLCC precinct partners.

“While fiscal adjustments such as subsidy recalibration, service tax base expansion, and fluctuations in foreign exchange rates will continue to shape the economic landscape, the directors maintain a buoyant outlook, supported by the group’s assets and strategic long-term leasing agreements,” the group said.

“The group is poised to sustain its commendable performance throughout FY2024,” it added.

KLCCP Stapled Group settled unchanged at RM7.54 on Thursday, giving the group a market capitalisation of RM13.61 billion.

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