KLCC REIT's net profit rises to RM165.18mil in 2Q

KUALA LUMPUR: KLCC Real Estate Investment Trust’s (REIT) net profit rose to RM165.18 million in the second quarter ended June 30, 2022 (Q2 2022) from RM144.01 million in the same quarter a year ago, backed by a significant improvement in the retail and hotel segments.

Revenue increased to RM350.31 million from RM280.16 million previously, the company said in a filing with Bursa Malaysia on Tuesday.

Meanwhile, KLCCP Stapled Group, which comprises KLCC Property Holdings Bhd (KLCCP) and KLCC REIT, achieved a revenue of RM350.3 million during the quarter, a 25.0 per cent increase compared to the same quarter last year.

Profit before tax rose 27.4 per cent to RM219.3 million, owing to the strong performances of the retail and hotel segments as economic activities cotinued to pick up in Q2.

The office segment continued to be a major contributor to the group’s revenue, backed by the long-term tenancies and the Triple Net Lease of Petronas Twin Towers and Menara 3 Petronas.

The segment recorded a marginal increase in revenue of RM145.4 million, attributable to higher interest income and lower financing costs resulting from a lower effective interest rate upon refinancing of Sukuk Murabahah in April 2021.

Suria KLCC and the retail podium of Menara 3 Petronas which represent the retail segment, saw an increase in revenue of 46.4 per cent to RM125.2 million, driven by higher rental from new leases and advertising income, coupled with lower rental assistance during the quarter.

The hotel segment’s revenue jumped to RM32.1 million compared with RM8.5 million in Q2 2021.

KLCCP chief executive officer Md Shah Mahmood said the group remained vigilant and focused on maintaining its business stability while continuing to explore differentiation in its offerings to rejuvenate customer experience.

With the encouraging performance and in maintaining stable and consistent returns to its holders of Stapled Securities, the group declared a dividend of 8.0 sen per stapled security, bringing the total to 16 sen for the first half of 2022. - Bernama