KLCCP Stapled Group posts lower 1Q revenue

by LYDIA NATHAN / pic by TMR FILE

KLCC Property Holdings Bhd (KLCCP) Stapled Group’s net profit fell 17.3% to RM146.1 million in the first quarter ended March 31, 2021 (1QFY21) from RM176.88 million a year ago for the same quarter, dragged by weaker performance in its retail and hotel segments.

Revenue slid to RM282.3 million from RM354.5 million due to the negative impacts from the Covid-19 pandemic on its operations.

KLCCP declared a dividend of seven sen for 1Q21, reflecting the groups’ overall performance for the quarter.

In a filing to Bursa Malaysia yesterday, the group said its performance from the retail segment was impacted as the mall was operating under tighter restrictions following the surge in Covid-19 cases during the quarter.

“The performance of the retail segment is significantly dependent on consumers’ spending behaviour and the restrictions imposed to control the pandemic. Nonetheless, tenants’ sustainability, as well as the safety and wellbeing of the customers continues to be the priorities of Suria KLCC,” it said.

Its retail segment saw recovery delayed with the reimposition of the Movement Control Order (MCO) 2.0 and revenue loss of 32.5% to RM90.4 million.

The groups’ office segment, consisting of Petronas Twin Towers, Menara 3 Petronas, Menara ExxonMobil and Menara Dayabumi, remained stable backed by the triple net lease (TNL) and long-term and locked-in leases.

The segment recorded a revenue of RM145 million, while pretax profit reduced marginally from RM121.1 million to RM117.5 million due to accounting adjustments, reflecting the extensions of the TNL agreements for the Twin Towers and Menara 3 Petronas.

Its hotel segment, Mandarin Oriental Kuala Lumpur, saw its pace pick up during the festivities in December 2020 but was disrupted by MCO 2.0, impacting its performance in both January and February 2021, which resulted in a decline in revenue of 67.6% and a loss of RM16.1 million for the quarter.

The group’s management services, which comprise facility management and car parking services, recorded a decrease in revenue of 10.2% to RM55.4 million due to fewer one-off projects under its services and lower income from the car park operations.

In the quarter, KLCC Parking Management Sdn Bhd launched its premium parking service by offering 49 car parking bays in its quest to elevate customer experience.

“KPM installed 20 electric vehicle (EV) chargers for the added convenience of customers using EVs or hybrid vehicles,” it said.

KLCCP Stapled Group will continue to remain cautious as the Covid-19 pandemic persists amid the vaccine rollout programmes.

CEO Md Shah Mahmood said the group will continue its recovery efforts and strive to improve its performances to remain resilient to deliver long-term value and sustainable returns to shareholders.

“With KLCC as ‘the place’, we will focus on elevating customer experience, advancing our digital transformation towards a digitally smart connected, and sustainable precinct,” he said.