KLCCP Stapled 4Q net profit up 33%

KUALA LUMPUR: KLCCP Stapled Group, comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust (KLCC REIT), recorded a 33% rise in fourth quarter (4Q) net profit to RM244.41 million, from RM183.66 million a year ago, mainly driven by the hotel and management services segment.

Revenue for the quarter ended Dec 31, 2019 fell marginally by 0.38% to RM364.96 million, from RM366.35 million previously.

In a statement, KLCCP said higher demand for rooms and the food and beverage segment resulted in a pre-tax profit for the hotel segment of RM2.3 million, a jump of more than seven times from RM295,000 a year ago.

The group’s facilities management and car parking management services saw an increase in pre-tax profit of 3.1% to RM19.94 million.

The office segment, which is its largest contributor, together with the retail segment (comprising the Suria KLCC mall and Menara 3 Petronas) also continued to drive stability in the group’s performance for the quarter, it said.

KLCCP declared a distribution per stapled security of 11.6 sen, representing an increase of 6.4% from last year. This brings the total distribution for the full year to 38 sen.

For the full year, net profit rose 9% year to RM790.15 million versus RM724.91 million for the previous year, while revenue inched up 1.2% to RM1.42 billion from RM1.41 billion.

Looking ahead, the group said it expects to remain resilient amid the continued challenging market landscape.

The full opening of the reconfigured space in Suria KLCC by mid 2020 is also expected to further boost the retail performance while the hotel segment is expected to benefit from higher tourist arrivals in conjunction with the Visit Malaysia 2020 campaign, it said.