KLCCP Stapled Group reports higher 3Q profit

KUALA LUMPUR (Nov 4): KLCCP Stapled Group has declared a higher income distribution for the third quarter ended Sept 30, 2016 (3QFY16) on the back of higher earnings.

The income distribution of RM155.26 million or 8.6 sen per unit is an increase of 5.5% over the RM147.13 million or 8.15 sen per unit announced for 3QFY15.

The stapled group comprises KLCC Property Holdings Bhd (KLCCP) and KLCC Real Estate Investment Trust (KLCC REIT).

The income distribution for 3QFY16 is made up of an interim dividend of 2.94 sen per unit totalling RM53.08 million by KLCCP, and an income distribution of 5.66 sen per unit totalling RM102.18 million by KLCC REIT, both payable on Dec 14.

In a filing with Bursa Malaysia, KLCCP Stapled Group said its net profit for 3QFY16 rose 19% to RM178.27 million, from RM149.8 million a year ago, despite revenue falling 2.3% to RM329.54 million, from RM337.19 million.

Earnings per share climbed to 9.87 sen from 8.3 sen.

The stapled group’s income distribution for the cumulative nine month period (9MFY16), meanwhile, stood at RM463.91 million or 25.8 sen per unit, up 3.5% from RM448.26 million or 24.83 sen a year ago.

Net profit expanded to RM538.84 million, up 6% from RM508.17 million for 9MFY15, while revenue rose by a marginal 0.6% to RM998.86 million, from RM993.09 million.

On prospects for FY16, the group said it expects the performance of its office segment to remain stable until the end of the year.

“Despite the slight drop in occupancy due to tenant remixing and market challenges, the retail segment’s performance is expected to remain stable,” it said.

As for its hotel segment, the group said it will continue to experience difficult trading conditions for the rest of the year.

This article first appeared in The Edge Financial Daily, on Nov 4, 2016. Subscribe to The Edge Financial Daily here.