KLCCP net profit rises to RM414.89mil in first half

KUALA LUMPUR: KLCCP Stapled Group, comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust, posted a higher net profit of RM414.89mil for the first halfendedJune30,2018,upfromRM408.29mil in the same period a year ago.

Revenue increased to RM690.11mil from RM674.18mil previously.

In a statement, it said net profit for the second quarter (Q2) ended June 30, 2018 increased to RM206.21mil from RM204.85mil in the previous corresponding quarter.

Revenue was higher at RM345mil RM337.52mil previously.

KLCCP attributed the growth to additional contracts in its management services segment and stronger revenue from its hotel segment.

“The management services segment’s revenue grew 5.5% year-on-year (y-o-y) in Q2, while pre-tax profit increased 6.8% y-o-y, contributed by new contracts and one-off from works under facilities management,” it said.

On the hotel segment represented by Mandarin Oriental in Kuala Lumpur, KLCCP said Q2 revenue rose 7.2% y-o-y backed by higher average room rate due to improved demand for its newly-renovated rooms.

“However, it recorded a loss due to higher depreciation expenses arising from the renovation,” it said.

KLCCP added that the hotel completed the renovation for 561 rooms and its second phase refurbishment of the guest rooms is expected to be completed by Q3 2018.

Moving forward, the group said it expected overall performance to remain stable, primarily anchored by the long-term leases in the office segment.

“The retail segment is expected to remain resilient amid the challenging market environment, while the hotel segment should continue to benefit from the refurbished rooms,” it added. — Bernama