KLCCP Stapled Group posts higher 3Q net profit of RM185.34mil

KUALA LUMPUR: KLCCP Stapled Group registered a net profit of RM185.34 million in the third quarter ended Sept 30, 2023 (3Q 2023) from RM176.59 million in the same quarter, attributed to the strong contribution from both the hotel and retail segments.

Malaysia’s largest self-managed staped security comprises KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust (KLCC Reit).

In a filing with Bursa Malaysia, the group said its revenue grew 7.3 per cent to RM401.16 million compared with RM373.98 million in the same quarter last year.

In a statement, KLCC Property Holdings Bhd chief executive officer Datuk Md. Shah Mahmood said KLCCP Stapled Group's strong performance in 3Q 2023 reflects the continued growth momentum across all business segments.

"Mandarin Oriental, Kuala Lumpur (MOKL Hotel) delivered an exceptionally impressive performance, capitalising on the return of corporate, group and MICE (meetings, incentives, conferences, and exhibitions) events and boosted by the high leisure demands.

"The group's encouraging performance gives us great confidence that this growth trend will likely continue towards year-end," he said.

KLCCP Stapled said the hotel segment, which is represented by MOKL Hotel, recorded its best quarter to date with an impressive RM55.0 million in revenue, up 20.1 per cent from RM45.8 million in 2Q 2022.

Meanwhile, Suria KLCC and the retail podium of Menara 3 Petronas, which represent the retail segment, remained solidly resilient with its unique customer experiences driving strong moving annual turnover (MAT)-tenant sales with higher occupancy and growing footfall.

Excluding the reversal adjustment on rental rebate in 3Q 2022, the group said the retail segment recorded revenue of RM126.5 million, surpassing last year's performance by 5.4 per cent.

The office segment, comprising the Petronas Twin Towers, Menara 3 Petronas, Menara ExxonMobil, and Menara Dayabumi, continued to be the primary 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 management services segment saw its revenue increase by 25.8 per cent compared to 3Q 2022, mainly due to the transformation of workspaces to the "Workplace For Tomorrow" concept for its office building tenants.

For the cumulative nine months (9M 2023), the group recorded a net profit of RM546.70 million from RM503.20 million in 2Q 2022, while revenue improved 12.5 per cent to RM1.18 billion from RM1.05 billion previously.

The group declared a dividend of 8.80 sen per stapled security for the quarter, bringing the total dividend for 9M 2023 to 26.10 sen.

On prospects, the group anticipates the economy to continue to improve, supported by healthy domestic demand but the market landscape is likely to remain challenging due to inflationary pressure and cautious consumer spending.

"MOKL Hotel is expected to sustain its recovery momentum backed by the growing international tourism and increasing corporate demand.

"Meanwhile, the retail segment will continue to benefit from the upcoming festive and holiday season, coupled with the increase in international and domestic footfalls that is expected to further boost tenant sales," it said. - Bernama

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