KLCCP Stapled Group 1Q net profit rises to RM188mil on strong retail, hotel segments

KUALA LUMPUR: KLCCP Stapled Group’s net profit for the first quarter ended March 31, 2024 (1Q 2024) rose to RM188.03 million from RM180.56 million in the same quarter a year ago.

Revenue increased 7.4 per cent to RM408.90 million from RM380.74 million previously, underpinned by the continued growth across all its business segments, it said in a filing with Bursa Malaysia today.

The real estate group said its retail segment revenue recorded a notable increase of 8.3 per cent, reflecting a well-executed strategy in the management of retail spaces, leading to the upward revision of base rents and an improvement in occupancy.

For hotel operations, it said Mandarin Oriental KL’s revenue increased by 27 per cent, transitioning from a loss before tax of RM2.3 million to a profit before tax (PBT) of RM1.8 million.

"The hotel’s successful marketing efforts on the back of strong brand presence in the precinct led to higher average room rates and occupancy to 58 per cent in 1Q 2024 from 50 per cent in 1Q 2023.

"Additionally, the food and beverage segment recorded a boost in sales, primarily driven by group and social events, with banquets being the major contributor," it said.

For management services, its revenue and PBT increased by 6.6 per cent and 4 per cent, respectively, reflecting the maintenance activities undertaken during the quarter. Additionally, higher interest income enhanced the overall performance.

KLCC Property Holdings Bhd chief executive officer Datuk Md Shah Mahmood said with the continued upswing in economic activities, the group registered an improved year-on-year performance, particularly in the retail and hotel segments.

"Our retail and hotel's strong first quarter performance and well executed strategies have put us on a strong footing for 2024. We remain focused on our commitment to deliver sustainable growth in the coming quarters," he said.

On its prospects, KLCCP Stapled said it remains optimistic that the economic forecasts will continue to be positive, and this augurs well for the group in maintaining the growth momentum and leveraging on the increase in the meetings, incentives, conventions and exhibitions segment as well as heightened domestic demand and tourism activities. "The relaxation of visa regulations for key markets such as China and India is expected to further stimulate the upward trajectory," it said.

KLCCP Stapled has declared a dividend of 9.00 sen per stapled security, 5.9 per cent higher than the same period last year. KLCC REIT Management Sdn Bhd and KLCC Property Holdings Bhd have announced that a first interim income distribution of 6.80 sen per unit and a first interim dividend of 2.20 sen per ordinary share for the financial year ending Dec 31, 2024, will be paid on June 28, 2024, respectively. - Bernama

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