KLCCP Stapled Group’s Q1 net profit falls to RM146.1m

KUALA LUMPUR, May 4 — KLCCP Stapled Group, which comprises both KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust, recorded a 17.4 per cent drop in net profit to RM146.13 million for the first quarter (Q1) ended March 31, 2021, compared to RM176.88 million a year earlier.

Revenue fell 20.4 per cent to RM282.37 million from RM354.59 million previously, the group said.

All of KLCC Property’s business segments posted a year-on-year (y-o-y) decline in both bottom line and revenue, it said in a filing with Bursa Malaysia today.

The retail segment’s profit before tax fell 43.3 per cent y-o-y to RM58.51 million mainly due to the provision of tenant assistance arising from the COVID-19 pandemic.

The office segment’s pre-tax profit edged down 2.9 per cent to RM117.51 million due to non-cash accounting adjustments following the extension of triple net lease agreements for Menara 3 Petronas and Petronas Twin Towers in November 2020.

Meanwhile, the hotel operations (Mandarin Oriental Kuala Lumpur) widened its loss before tax by 82.2 per cent to RM16.10 million.

“Despite the challenging operating environment, KLCCP Stapled Group declared a Q1 2021 dividend of seven sen per stapled security (8.3 sen in Q1 2020), reflective of the group’s overall performance for the quarter,” it said in a press statement.

KLCCP Stapled Group said while the national COVID-19 vaccination rollout would foster market recovery, the group remained cautious as the pandemic persisted and anticipated the year to still be challenging.

“Mandarin Oriental Kuala Lumpur will continue to focus on the domestic market with innovative offerings to boost occupancy and event bookings, while Suria KLCC’s performance is significantly dependent on consumers’ spending behaviour as well as the restrictions imposed to control the pandemic.

“Nonetheless, tenants’ sustainability as well as the safety and well-being of the customers continue to be the priorities of Suria KLCC,” it added. — Bernama

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