KLCCP Stapled Group poised for a turnaround


PETALING JAYA: On the back of expectations of a turnaround in the fourth quarter of financial year 2021 (FY21), in line with the reopening of the economy and year-end festivities and holidays, Kenanga Research has raised its earnings outlook on KLCCP Stapled Group.

“We increased FY21 estimated earnings on better-than-expected revenue contribution from the retail segment on less rental rebates in light of its resilience seen in the third quarter of FY21, while the hospitality segment’s occupancy is expected to remain at circa 20% for FY21.

“Growth for FY22 is driven by less year-on-year rental holidays for retail tenants and better occupancy for the hospitality segment at circa 40%,” it said in a note yesterday.

Kenanga Research noted that the group is actively securing most of the tenants for the retail space and is expecting flattish to mildly positive reversions going forward.

Meanwhile, the group’s main driver, the office segment, remains extremely stable on long-term leaded of over 15 years.

It said its office assets have locked in long-term leases with the recent extension of the triple net lease agreements for Petronas Twin Towers and Menara 3 Petronas for a further 15 years to 2042, reinforcing its revenue stability.

Menara ExxonMobil has secured lease renewal for the next three years of its 18-year lease tenure.

For the nine months to Sept 30, KLCCP Stapled Group had a realised distributable income of RM44mil, which was slightly above the research firm’s expectation at 81% of full-year estimate. It came within consensus expectations at 73% of its full-year outlook.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Kenanga Research , KLCCP Stapled Group ,

   

Next In Business News

BCorp to divest entire 71.73% stake in Berjaya Higher Education
Tenure limit of independent directors set at 12 years
Nestcon secures RM188.5mil construction contract
Texchem to buy 28% stake in Sushi King for RM102.2mil
Proton to introduce smart automobile's new energy vehicles in Asean
UEM Sunrise unveils KAIA Heights sales gallery
KLCI down 0.8%, but energy stocks up on rising crude prices
Brent charges towards US$90 per barrel as Middle East unrest stokes supply disruption
PCG to build a 60,000 tonne melamine plant in Kedah
China drafts rules to ease property developers' use of escrow funds

Others Also Read


Vouchers