KLCCP Stapled Group’s 2Q profit rises on retail strength, declares 9.2 sen dividend

• Segmentally, the retail division was the largest revenue contributor in the quarter with RM137.92 million. The segment recorded a 1.4% year-on-year increase in pre-tax profit to RM109.51 million, supported by higher base rents and stronger occupancy at Menara 3.

KUALA LUMPUR (Aug 27): KLCCP Stapled Group (KL:KLCC) said its second quarter net profit rose 4.9% to RM200.45 million from RM191.06 million a year earlier, supported by higher contributions from the retail and hotel segments.

Earnings per share for the second quarter ended June 30, 2025 (2QFY2025) increased to 11.10 sen from 10.58 sen, according to the group's stock exchange filing.

Quarterly revenue was down by a marginal 0.72% to RM410.25 million from RM413.25 million in 2QFY2024, due to slightly lower contributions from the management services and retail segments.

Gross profit margin for the quarter improved slightly to 63.9% from 62.8% a year ago, while operating margin rose to 63.9% from 62.8%. Operating expenses decreased 3.7% year-on-year to RM148.16 million. Financing costs also fell 3.3% to RM44.14 million.

KLCCP Stapled Group, comprising KLCC Property Holdings Bhd (KLCCP) and KLCC Real Estate Investment Trust (KLCC REIT), manages landmark assets such as Suria KLCC, Menara ExxonMobil, Petronas Twin Towers and Mandarin Oriental Kuala Lumpur.

Segmentally, the retail division was the largest revenue contributor in the quarter with RM137.92 million. The segment recorded a 1.4% year-on-year increase in pre-tax profit to RM109.51 million, supported by higher base rents and stronger occupancy at Menara 3.

The hotel segment swung to a pre-tax profit of RM0.83 million, from a loss of RM1.36 million a year ago, after completing refurbishment works at Mandarin Oriental Kuala Lumpur’s ballroom.

Management services contributed a higher pre-tax profit of RM21.08 million, driven by scheduled maintenance activities and increased car park revenue. Office segment profit was stable at RM120.76 million, backed by long-term leases under its Triple Net Lease model.

KLCCP Stapled Group declared a second interim dividend and income distribution of 9.2 sen per stapled security—comprising 1.96 sen from KLCCP and 7.24 sen from KLCC REIT—payable on Sept 30, with an ex-date of Sept 12.

For the cumulative six months, the group's net profit grew 6% to RM401.94 million from RM379.09 million in the previous January-June period, while earnings per stapled security rose to 22.26 sen from 21 sen. Revenue dipped marginally by 0.61% to RM817.17 million.

Looking ahead, the group said the cancellation of the luxury goods tax and a rebound in tourist arrivals support a positive outlook for its retail and hotel assets, though it acknowledged macroeconomic pressures. The office segment is expected to remain resilient due to its long-term lease structure.

"Acknowledging the ongoing market challenges, we have proactively invested in asset enhancements in this first half of the year to sharpen our competitive edge and drive stronger performance in the coming quarters," chief executive officer Datuk Mohd Salem Kailany said in a statement.

"We remain confident that the group will continue to deliver a resilient performance in the second half of the year, supported by our solid portfolio, strong fundamentals, and ongoing strategic initiatives that position us well for sustainable growth," he added.

Shares of KLCCP Stapled Group closed up two sen or 0.23% at RM8.64 on Wednesday, giving the group a market capitalisation of RM15.6 billion.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.