KLCCP Stapled's 2Q net profit up 9.5%, declares 8.8 sen dividend

• "These office assets continued to anchor the group’s stable performance, recording an increase in revenue and PBT of RM145.4 million and RM119.6 million, respectively."

KUALA LUMPUR (Aug 15): KLCC Stapled Group Bhd’s net profit for the second quarter ended June 30, 2023 (2QFY2023) rose 9.46% to RM180.8 million, from RM165.18 million a year ago, on the back of higher revenue and interest income.

The group — comprising KLCC Property Holdings Bhd (KLCCP) and KLCC Real Estate Investment Trust (KLCC REIT) — saw quarterly revenue grow 12.65% to RM394.63 million from RM350.31 million on the back of improved performance across all business segments, buoyed by the upswing in business and meetings, incentives, convention and exhibition (MICE) activities.

It declared a dividend of 8.80 sen per stapled security, payable on Sept 27. These brought KLCC Stapled Group's total income distribution to 17.30 sen for the first half of FY2023.

The hotel segment, represented by Mandarin Oriental Kuala Lumpur (MOKL) recorded an occupancy rate of 48% versus 43% in the same period last year.

Its management services segment, comprising facilities management and car parking management services, saw revenue increase by 43.7% while profit before tax (PBT) rose 33.3%, supported by maintenance activities and improved car park revenue with an increase in transient and season car park customers.

The group’s Suria KLCC and the retail podium of Menara 3 Petronas, which represent the retail segment, recorded higher revenue of RM128.5 million, an increase of 2.6% from last year, with PBT of RM97.2 million.

It noted that 12 new tenants had strengthened the mall’s tenant mix and contributed to a higher occupancy of 96% during the quarter under review.

Meanwhile, its office segment remained stable, backed by the triple net lease (TNL) arrangement and long-term leases of its office assets, namely Petronas Twin Towers, Menara 3 Petronas, Menara ExxonMobil and Menara Dayabumi. 

"These office assets continued to anchor the group’s stable performance, recording an increase in revenue and PBT of RM145.4 million and RM119.6 million, respectively," it said.

For the cumulative six months ended June 30, 2023, the group's net profit went up 10.34% to RM361.37 million from RM326.61 million a year earlier, while revenue also increased 15.38% to RM775.38 million from RM672 million.

On prospects, the group expects the positive growth momentum to continue to the next quarter with a resurgence of domestic and international MICE activities, events, and tourism.

“The retail segment is well positioned for continued growth with its strategy in place combined with a vibrant mix of well-curated tenants. Backed by its robust brand reputation and strategic collaborations, MOKL anticipates sustained growth and favourable performance in the next quarters," it said.

Despite inflationary pressures and rising costs, the group expects its performance to remain stable heading into the 2HFY2023.

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