by IZZAT RATNA
KLCC Staple Group is expected to disburse approximately 5% year-on-year (YoY) distribution yield for 2018 on the back of RM2.6 billion annual sales turnover for Suria KLCC.
CEO Datuk Hashim Wahir said that based on the group’s share price, the distribution yield is over 4%, which is supported by yields on property appreciation as well.
“So far, in the last five years, we have appreciation of distribution of about 25%—translating to YoY appreciation of 5%,” he told reporters at a press conference after its AGM in Kuala Lumpur today.
“Hence, we will continue to focus on that because office spaces’ reversion rate increases by 10% every three years while the retail segment is hovering at between 4% and 5%,” he said
As such, Hashim said that the group is expected to distribute approximately 97% of the total distributable income in 2018, higher than the 90% distributed previously.
“I think so far we have been able to maintain our cost, which has allowed more distribution to shareholders,” he added.
Amid current challenging market condition, Hashim said assets under the group provides guarantee for investors despite increasing overnight policy rate (OPR) that could make other investments more attractive in terms of yield.
“But I believe institutional investors want to have a portfolio of a stable yield versus yielding on a short-term,” he added.
Assets under the group’s portfolio include Petronas Twin Towers, Menara ExxonMobil, Menara 3 Petronas, Suria KLCC, and Mandarin Oriental.