KUALA LUMPUR: KLCCP Stapled Group is optimistic that the growth trend for 2024 will remain positive, as it continues to leverage on iconic assets, long-term and triple net lease arrangements, underpinned by the solid footing of its retail and hospitality segments.
Malaysia’s largest self-managed stapled security comprises KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust.
For the fourth quarter ended Dec 31, 2023 (4Q23), KLCCP Stapled Group’s net profit rose by 38% year-on-year (y-o-y) to RM384.6mil or earnings per share of 21.30 sen. On the other hand, revenue increased 7.1% y-o-y to RM442.6mil from RM413.3mil.
In a filing with Bursa Malaysia, KLCCP said the improved performance for the quarter was mainly supported by improvement in the hotel and retail segments. The hotel achieved higher occupancy, coupled with higher average room rates while the retail segment recorded improvement in occupancy and tenants’ sales.
The group also noted that its overall profitability was higher despite the rise in utility costs across all business segments, which was due to the hike in the imbalance cost pass-through earlier this year.
KLCC Property Holdings Bhd chief executive officer Datuk Md Shah Mahmood said the group’s solid growth momentum across all segments, coupled with the company’s strategic actions, have enabled it to deliver its strongest performance in 2023.
“We are optimistic the upswing will continue, particularly in the retail and hotel segments. Our customer-focused strategy, together with the growth in tourism and MICE activities, will strategically position us to synergise efforts and enhance our competitiveness towards future business sustainability,” he said in a statement yesterday.
For the office segment, which is made up of PETRONAS Twin Towers, Menara 3 PETRONAS and Menara ExxonMobil, the group said it remained stable, backed by the triple net lease and long term leases. This division’s revenue for 4Q23 increased to RM146.5mil, while pre-tax profit posted a slight increase to RM114.5mil.
With regards to the group’s retail segment, revenue in 4Q23 rose by 9.3% y-o-y to RM137.1mil and pre-tax profit was up by 7.4% to RM104.04mil. This was underpinned by the improvement in occupancy and footfall. Moreover, KLCCP added Suria KLCC saw 10 new tenants during the quarter.
Additionally, the group’s hotel segment represented by Mandarin Oriental Kuala Lumpur, registered a revenue increase of 32.8% y-o-y to RM65.2mil and a pre-tax profit of RM6.2mil. This was on the back of a higher occupancy rate of 62% and a 27% surge in revenue per available room, driven by group stays, and banqueting events.
KLCCP declared a 40.50 sen dividend per stapled security for the year, the highest since its listing as a stapled security in 2013.
