KLCCP net profit up 14.7% to Rm165mil in 2Q

KUALA LUMPUR: KLCC Property Holdings Bhd’s (KLCCP) net profit rose 14.7% to Rm165.18mil in the second quarter ended June 30, 2022 (2Q22) from Rm144.01mil a year ago.

The growth was driven by an increase in footfall for Suria KLCC, higher Mandarin Oriental Kuala Lumpur occupancy and better food and beverage (F&B) covers.

In a filing with Bursa Malaysia, the group said the pre-tax profit showed a significant improvement in the retail and hotel segments by 69.3% and 54.7%, respectively.

Its revenue for the quarter was up 25% to Rm350.31mil compared to Rm280.17mil in the corresponding period a year ago.

Meanwhile, the group’s office segment remained stable, backed by triple net lease and long-term leases.

For KLCCP’S hotel segment, it recorded higher revenue of Rm32mil in the quarter from Rm9mil a year ago, owing to higher average occupancy, improved F&B covers as well as better average room rate.

“This resulted in an improvement of the year-to-date revenue by 195% and a lower pre-tax loss by 39%.

“Mandarin Oriental continues its promotional programmes to attract more guests and patrons eager to resume dine-in activities,” it said.

Moving forward, the directors are cautiously optimistic that the group remains on the path to recovery to pre-pandemic levels.

“However, rising inflation and the increase in cost of materials may impede the economic recovery momentum.

“Cautious spending and lower purchasing power of consumers may affect the sustainability of recovery in the retail and hospitality segments,” it said.

Meanwhile, KLCCP said Suria KLCC is committed to prioritising the well-being of shoppers and continues to enhance its customer experience, including with a new online booking platform for better connectivity to services.

It added that Mandarin Oriental would continue with promotional activities in order to strengthen its reach to international travellers.

KLCCP expects its hotel segment to gradually improve during the year, while the office segment is anticipated to remain stable on the back of long-term tenancies.

Its basic earnings per share rose 9.15 sen per share in 2Q22 compared to 7.98 sen a year ago.

The group has declared a dividend of eight sen per share for the quarter.

“The dividend and income distribution for KLCCP and KLCC Real Estate Investment Trust will be paid on Sept 28, 2022,” it said.