Kenanga Research has trimmed FY26 earnings by 2% and expects 3% net profit growth in FY27.
PETALING JAYA: The outlook for KLCCP Stapled Group, comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust, is stable but unexciting as the company’s management prioritises steady income streams over growth, fuelled by acquisitions or expansion.
Analysts believe KLCCP’s upside remains capped despite having posted a 55.32% jump in net profit for the fourth quarter of financial year ended Dec 31, 2025 (4Q25) as well as record high financial performance for financial year 2025 (FY25). It also declared a record-high dividend for FY25.
MBSB Research has maintained a “neutral” recommendation on the stock with an unchanged target price (TP) of RM8.80 after a briefing following the release of the company’s 4Q25 and FY25 results last week.
It said the retail division remains solid and expects Visit Malaysia 2026 (VM2026) to support sales and positive rental reversion at Suria KLCC mall.
“However, impact from expected higher tourist arrivals is expected to be marginally positive as 98% of leases are on fixed rent, while only 2% of leases are on variable rent,” it noted.
Occupancy rate at the mall continues to be solid with a 9% higher footfall in FY25 compared to FY24.
The hotel division with the flagship Mandarin Oriental property recorded better performance in FY25 but occupancy rates would remain around 60% in FY26 due to refurbishment of apartments, with higher occupancy rates only from FY27.
Analysts expect incremental earnings from the management services division, especially with the opening of the Ombak KLCC mall near Suria KLCC in 2026.
Kenanga Research expects the new mall to benefit the company from provision of car park services and certain maintenance works.
The brokerage has maintained a “market perform” call on the stock and lifted its TP to RM9.37 from RM8.92 as it sees the company maintaining a steady income stream cushioned by VM2026 tourism.
However, it has trimmed FY26 earnings by 2% and expects 3% net profit growth in FY27.
It remains positive on continuous robust tourist arrivals and said Mandarin Oriental has seen better volumes in forward bookings in January 2026.
It sees spending in non-luxury segments remaining supportive of the retail division despite softer luxury goods spending in FY25.
Maybank Research, which has maintained a “hold” call on the stock with an unchanged TP of RM9.18, said the company’s management continues to focus on extracting value within the KLCC ecosystem (placemaking, park activations, environmental, social and governance upgrades) while gradually scaling facilities management income as newer KLCC-related assets (for example, Ombak KLCC) ramp up.
Noting that this strategy reinforces KLCCP’s defensive earnings profile, the company would continue to monitor sponsor assets, but its management has shared that there were no near-term large deals and overseas expansion remains unlikely.
“Management continues to prioritise tenant remixing and experiential activations (30 new tenants in 2025, including eight first-to-market brands) over rental step-ups,” it said, adding that despite an 8% drop in retail spending in FY25, spending remained well above pre-Covid-19 levels.
