KUALA LUMPUR, June 25 – KLCCP Stapled Group has delivered an impressive performance in the first quarter of 2023, recording an 18.3% increase in revenue to RM380.7 million compared to the same period last year. The group’s Profit Before Tax (PBT) also rose by 16.9% to RM236.8 million, highlighting sustained growth and recovery across all business segments. The solid financial results have prompted KLCCP Stapled Group to declare a dividend of 8.50 sen per stapled security, marking a 6.3% increase from the first quarter of 2022.

This dividend distribution reflects the group’s resilient performance and commitment to generating value for its stakeholders. The positive start to the year can be attributed to the ongoing economic revival, with all business segments experiencing year-on-year growth. The retail, hotel, and management services segments demonstrated significant improvements, setting a strong growth momentum for the group. Suria KLCC and the retail podium of Menara 3 PETRONAS, representing the retail segment, reported an increase in PBT of RM20.0 million, driven by robust tenant sales and a rise in customer counts.

Suria KLCC’s Moving Annual Turnover (MAT)-tenant sales surpassed pre-Covid levels by 17%, largely due to increased sales in the fashion and food and beverage sectors.  The quarter also witnessed the addition of four new tenants, including Nitori, Japan’s largest furniture and home furnishing brand, and Pak John Steamboat & BBQ. The hotel segment, represented by Mandarin Oriental, Kuala Lumpur (MOKL Hotel), showed a significant improvement compared to the same quarter last year. The segment’s revenue increased to RM46.1 million, resulting in a narrowed loss of RM2.3 million.

This growth was attributed to improved occupancy rates, pent-up demand for high-yielding rooms, increased corporate bookings, and the resurgence of International Meetings, Incentives, Conference & Exhibitions (MICE) events. MOKL Hotel achieved an occupancy rate of 49.5%, a notable increase from 21.1% in the previous year. The management services segment, which includes facilities and car parking management services, experienced a revenue increase of 21.3% to RM77.4 million. PBT rose by 13.2% to RM19.2 million, driven by enhanced car parking income, ongoing reinstatement works for the “Workplace for Tomorrow” (WFT), and higher interest income.

KLCC Parking Management Sdn Bhd (KPM) observed an increase in transient car count during the quarter, attributed to exhibitions, concerts, and events held within the KLCC precinct. Additionally, KPM secured 278 parking bays in Putrajaya, expanding its total car park bays under management to over 15,000. The office segment, comprising PETRONAS Twin Towers, Menara 3 PETRONAS, Menara ExxonMobil, and Menara Dayabumi, provided a stable income for the group. While the revenue showed a marginal increase to RM146.3 million, the segment contributed to a PBT of RM120.6 million, boosted by income from utility charges and higher interest income.

Datuk Md. Shah Mahmood, Chief Executive Officer of KLCC Property Holdings Berhad, expressed confidence in the group’s performance and solid recovery momentum, despite navigating a competitive market landscape and macroeconomic challenges. He emphasized that positive signs of business normalization are evident, and the group remains optimistic about the future with the anticipated return of MICE, events, tourism activities, and rising domestic demand.

Moving forward, Suria KLCC will continue implementing strategic initiatives to enhance the mall’s vibrancy and drive sales, while Mandarin Oriental, Kuala Lumpur aims to leverage its strong brand value and innovative offerings to sustain its positive performance. With long-term leases and a triple net lease agreement in the office segment, KLCCP Stapled Group expects overall performance to remain stable in the coming quarters. However, the group remains cautious of rising living costs and inflationary pressure, which may impact consumer spending patterns and business costs.

Pocket News