KLCCP Stapled Group Bhd’s net profit for the second quarter ended June 30, 2022 (2Q22), rose 14.69% to RM165.18 million from RM144.01 million a year prior on the back of significant improvement in the retail and hotel segments.

The group, which comprises KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust, saw its earnings per share increase to 9.15 sen from 7.98 sen previously.

Its revenue edged higher by 25.03% to RM350.31 million from RM280.17 million last year on improved performance of retail and hotel segments.

The group declared a dividend of eight sen per stapled security, to be paid on Sept 28.

In a filing to local bourse yesterday, the group said the improvement for the 2Q22 is backed by the increase in the footfall in Suria KLCC, higher occupancy in Mandarin Oriental Kuala Lumpur and higher food and beverage (F&B) covers. 

On a quarterly basis, net profit grows 2.32% from RM161.44 million reported for 1Q22, while revenue came in higher by 8.89% from RM321.71 million for 1Q22.

Moving forward, the group is cautiously optimistic on its path to recovery to the pre-pandemic level.

“However, rising inflation and the increase in the cost of materials may impede economic recovery momentum,” it said.

The group also noted that cautious spending and lower purchasing power of consumers may affect the sustainability of the recovery in retail and hospitality segments.

For its office segment, the group expected it to remain stable on the back of long-term tenancies.

KLCCP Stapled’s share price closed unchanged at RM6.93 yesterday, valuing the group at RM12.51 billion.

Source: The Malaysian Reserve, 10 August 2022