KLCCP Stapled Group posts Q2 net profit of RM179mil

In a filing with Bursa Malaysia yesterday, the company said all segments showed improvement compared to the third quarter of 2017, mainly from its hotel and retail segments.

KUALA LUMPUR: KLCC Property Stapled Group's Q2 net profit was flattish, rising 0.6% to RM179.15mil from RM177.96mil in the year-ago quarter as it experienced revenue growth in its management services and hotel segments. 

Revenue for the quarter under review was up 2.2% to RM345mil from RM337.52mil a year earlier.

Year to date, group revenue gained 2.5%  to RM690.11mil from RM674.18mil in Q2 2017, while net profit rose 1.6% to RM414.89mil from RM408.29mil.

For Q2, the group distributed 93% of its overall distributable income with a distribution per stapled security of 8.7 sen, bringing total distribution so far this year to 17.4 sen.

In the first six months of 2018, revenue and profit before tax (PBT) in the office segment was relatively stable with marginal growth while the retail segment saw revenue and PBT grow 1.2% and 1.5% respectively from higher rental rates. 

The hotel segment comprising Mandarin Oriental KL (MOKL) saw 7.2% revenue growth on higher average room rates from higher demand for the newly renovated guestrooms. 

However, the segment recorded a loss before tax of RM1.72mil due to higher depreciation expenses from the newly renovated rooms. 

"MOKL Hotel has to-date completed the renovation for 561 rooms and its second phase refurbishment of the guestrooms is expected to be fully completed by third quarter of 2018," said the group.

The management services segment posted 5.5% higher revenue of RM101.08mil and 6.8% higher PBT of RM39.07mil due to new contracts and one-off works under facilities management.