- The group’s Suria KLCC and the retail podium of Menara 3 Petronas, which represent the retail segment, recorded notable increases of 8% and 11% in quarterly revenue and profit before tax respectively.
KUALA LUMPUR (Aug 28): KLCCP Stapled Group Bhd (KL: KLCC) said its second quarter net profit rose 5.67% to RM191.06 million from RM180.8 million a year ago, on the back of commendable performances from all businesses, especially the retail and hotel segments.
The group — comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust — said revenue for the quarter ended June 30, 2024 (2QFY2024) grew 4.72% year-on-year to RM413.25 million from RM394.63 million.
KLCC declared a dividend of 9.2 sen per stapled security — comprising 2.46 sen for KLCC Property and 6.74 sen (taxable) for KLCC REIT — payable on Sep 30. This brought the group's total income distribution to 18.2 sen for the first half of FY2024 (1HFY2024), up 5.2% compared with 17.3 sen it declared for the same period last year.
The group’s Suria KLCC and the retail podium of Menara 3 Petronas, which represent the retail segment, recorded notable increases of 8% and 11% in quarterly revenue and profit before tax respectively.
"This achievement underscores the effective retail space management, resulting in upward rental revisions and improved occupancy," KLCCP said in its bourse filing on Wednesday. "Continuous efforts in curating an attractive tenant mix have bolstered profitability and strengthened our position in the industry despite heightened competition."
During 2QFY2024, the group also saw the completion of its acquisition of the remaining 40% equity interest in Suria KLCC Sdn Bhd not already owned by KLCCP for a cash consideration of RM1.95 billion.
The hotel segment, represented by Mandarin Oriental Kuala Lumpur recorded an occupancy rate of 52% during the quarter versus 48% in the same period last year, attributed to successful marketing efforts coupled with strong brand presence in the precinct.
Meanwhile, its office segment remained stable, backed by the triple net lease arrangement and long-term leases of its office assets, namely Petronas Twin Towers, Menara 3 Petronas, Menara ExxonMobil and Menara Dayabumi.
For 1HFY2024, KLCCP's net profit went up 4.91% to RM379.09 million from RM361.37 million a year earlier, while revenue increased 6% to RM822.15 million from RM775.38 million.
On prospects, the group said it expects the retail sector to benefit from the relaxation of visa regulations for key markets such as China and India until the end of 2024.
"Suria KLCC is committed to maintaining its prominent presence in the precinct by prioritising both consumers and tenants, ensuring sustainable growth. Despite heightened competition, the mall remains steadfast and resilient," it added.
In addition, the group said Mandarin Oriental Kuala Lumpur will continue to strengthen its collaboration with the KLCC precinct partners to deliver sustainable performance.
Annies Md Ariff redesignated as chairman as Ahmad Nizam steps down
In a separate filing, KLCCP said it has appointed Datuk Annies Md Ariff to succeed Tan Sri Ahmad Nizam Salleh, who will be stepping down from his role as chairman on Sept 1, after helming the group since Dec 21, 2018.
Annies was on July 1 appointed as a non-independent non-executive director of KLCCP.
"Annies’ wealth of experience in diverse capacities will help steer KLCCP Stapled Group towards the next phase of business growth and sustainability," the group said.
At the close of trading on Wednesday, KLCCP was two sen or 0.26% lower at RM7.80, giving the group a market capitalisation of RM14.08 billion.
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