KLCC Property records better earnings

KUALA LUMPUR: KLCC Property Holdings Bhd posted a net profit of RM706 million for its financial year ended March 31, 2011 (FYE2010), up from the net profit of RM647.6 million posted for FYE2009.

Its revenue for FYE2010 also reflected an increase from the previous financial year, up 5% to RM926.4 million from RM881.3 million, said the developer in a Bursa announcement on Thursday, May 19.

The increase in revenue was attributed to the improved revenue from hotel operations in addition to better rentals attained by the retail mall.

This was further amplified by the higher rentals of office buildings — in particular Dayabumi, which underwent a rental revision recently — as well as stronger revenue achieved by the management services segment, it said.

It posted a net profit of RM166.4 million on the back of revenue of RM228.8 million for its fourth quarter ended March 31, 2011 (4Q2010).

Comparatively, it recorded a net profit and revenue of RM467.2 million and RM225.6 million respectively a year ago.

Meanwhile, the company has adopted Dec 31 as its new financial year end with effect from Apr 1, 2011. The shorter nine-month period will include the results of Lot C retail, which is an expansion of Suria KLCC.

With the anticipated additional revenue from the retail segment, and the existing long term office tenancies, it is optimistic that the new financial year will yield satisfactory results.

A final dividend of seven sen per share, tax exempt under the single tier tax system amounting to RM65.39 has been proposed. The date for payment will be announced at a later date.