KLCCP Stapled Q2 net profit down 22%


  • Corporate News
  • Thursday, 06 Aug 2020

According to KLCC Property chief executive officer Datuk Hashim Wahir (pic), the group has been extending rental assistance to its tenants at Suria KLCC to ensure business continuity and sustainability

PETALING JAYA: KLCCP Stapled Group’s net profit in the second quarter ended June 30 fell by over 22% year-on-year (y-o-y) after the performance of its hotel and retail segments deteriorated sharply due to the movement control order (MCO).

KLCCP Stapled, which comprises KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust (KLCC REIT), told Bursa Malaysia that its net profit was RM140.46mil as compared to RM180.38mil a year earlier.

The retail segment’s pre-tax profit plunged by 50% in the second quarter, largely due to rental assistance to tenants in response to the MCO and lower internal digital advertising income.

For context, the retail segment is represented by Suria KLCC and the retail podium of Menara 3 Petronas.

The hotel segment or the Mandarin Oriental Kuala Lumpur recorded a loss of RM20.4mil as operations were scaled down to comply with the MCO.

Meanwhile, the group’s revenue for the April-June 2020 period dropped by 23.88% y-o-y to RM267.25mil as a result of the pandemic.

All segments of KLCCP Stapled, except for management services, recorded a lower revenue in the second quarter on a y-o-y basis.

For the second quarter, the group distributed 7.5 sen per stapled security, lower than the 8.8 sen distributed in the second quarter of the previous financial year.

The earnings per share in the second quarter was 7.78 sen.

Cumulatively, for the first half of financial year 2020, KLCCP Stapled’s earnings fell by about 12.9% y-o-y to RM317.34mil. In comparison, the group recorded a net profit of RM364.33mil in first half 2019.

Revenue in the six-month period dropped by 11.74% y-o-y to RM621.84mil.

Total dividend payment in the first half was 15.8 sen, as compared to 17.6 sen in first half 2019.

Moving forward, the group expects the performance of its office segment to remain stable, backed by long-term tenancies.

While the re-opening of Suria KLCC has recorded a positive sales turnover in June, the group said it remained cautious, considering the diminishing consumer spending power. The retail and hotel segments are expected to remain challenging for the rest of the year.

According to KLCC Property chief executive officer Datuk Hashim Wahir, the group has been extending rental assistance to its tenants at Suria KLCC to ensure business continuity and sustainability.

“The full re-opening of our businesses is showing a positive trend towards recovery and we will continue our focus to regain the momentum to create long-term value for our holders of stapled securities, ” he said in a filing with Bursa Malaysia.

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