KLCCP Stapled’s net profit for second quarter falls 22%

05 Aug 2020 / 22:13 H.

PETALING JAYA: KLCCP Stapled Group, consisting of KLCC Real Estate Investment Trust (KLCC REIT) and KLCC Property Holdings Bhd, saw its net profit for the second quarter ended June 30, fall 22.1% to RM140.46 million from RM180.38 million a year ago due to the sharp decline in the performance of the hotel and retail segments, arising from the Covid-19 pandemic and the movement control order.

Its revenue was lower by 24% at RM267.25 million versus RM351.09 million last year.

For the six months period, its net profit fell 12.9% to RM317.34 million from RM364.33 million, while revenue was lower by 11.7% at RM621.84 million against RM704.54 million last year.

KLCCP Stapled Group distributed 7.5 sen per stapled security for the second quarter, amounting to a total dividend payment of 15.8 sen for H1’20.

The group expects the performance of the office segment to continue to remain stable backed by the long-term tenancies. While the reopening of Suria KLCC has recorded a positive sales turnover in June, the group remains cautious, noting the diminishing consumer’s spending power as a result of increasing unemployment rate and the surrounding offices have yet to be fully reopen.

The hotel segment, meanwhile, will continue to be affected as Malaysia’s borders remain closed with large gatherings and events still restricted. The group expects the hotel segment will continue to operate in challenging environment in the second half of the year.

KLCC Property Holdings CEO Datuk Hashim Wahir said it has been supportive towards its affected tenants at Suria KLCC by extending rental assistance.

“The full reopening of our businesses is showing a positive trend towards recovery and we will continue our focus to regain the momentum to continue to create long-term value for our holders of stapled securities.”

There was a sharp decline in the performance of the group’s hotel and the retail segments. – AFPPIX

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