KLCCP Stapled Group posts 38% jump in 4Q profit, declares highest yearly dividend since listing in 2013

• The group — comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust — saw quarterly revenue grow 7.1% to RM442.63 million from RM413.26 million, it showed in a bourse filing on Wednesday.

KUALA LUMPUR (Feb 7): KLCCP Stapled Group’s net profit rose 37.6% to RM384.59 million for the fourth quarter ended Dec 31, 2023 (4QFY2023), from RM279.47 million a year ago, primarily contributed by improvement in the hotel and retail segments, while the office segment remained stable.

The group — comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust — saw quarterly revenue grow 7.1% to RM442.63 million from RM413.26 million, it showed in a bourse filing on Wednesday.

It declared a dividend of 14.4 sen per stapled security for the quarter, bringing the total declared dividend for the year to 40.5 sen — the highest since its listing as a stapled security in 2013, according to the group.

Mandarin Oriental, Kuala Lumpur, which represents the hotel segment, recorded a remarkable increase in revenue of 32.8% year-on-year to RM65.2 million and a profit before tax (PBT) of RM6.2 million. This was attributed to higher occupancy of 62%, from 56% in 4QFY2022, and a 27% surge in revenue per available room, driven by group stays and banqueting events, marking in October 2023 the highest revenue for the hotel since its opening.

The retail segment, represented by Suria KLCC and the retail podium of Menara 3 Petronas, delivered a 9.3% increase in revenue to RM137.1 million and a 7.4% increase in PBT to RM104 million, mainly driven by improvement in occupancy and footfall. It was noted that Suria KLCC welcomed 10 new tenants during the quarter.

Meanwhile, the office segment, comprising the Petronas Twin Towers, Menara 3 Petronas and Menara ExxonMobil, remained stable, backed by the triple net leases and long-term leases. 

For FY2023, KLCCP's net profit climbed 18.9% to RM931.29 million from RM782.66 million for the previous year, as revenue rose 10.9% to RM1.62 billion from RM1.46 billion.

During the latest quarter, the group also recognised fair value gain of RM221.9 million arising from overall improvement in the market value of its investment properties, which contributed to the bottom line for the year.

On its prospects for 2024, the group is optimistic that the growth trend will remain positive, as it looks to continue to leverage its assets, long-term and triple net lease arrangements, underpinned by the solid footing of the retail and hospitality segments.

“We are optimistic that the upswing will continue, particularly in the retail and hotel segments. Our customer-focused strategy, together with growth in tourism and Mice (meeting, incentive, conference and exhibition) activities, will strategically position us to synergise efforts, and enhance our competitive advantage towards future business sustainability”, said Datuk Md Shah Mahmood, KLCCP's chief executive officer, in a separate statement.

KLCCP rose one sen, or 0.14%, to close at RM7.31 on Wednesday, with a market capitalisation of RM13.2 billion.

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