KUALA LUMPUR, April 3 (Bernama) -- KLCCP Stapled Group held its Annual General Meeting (AGM) today to present the company’s performance to its shareholders for the financial year ended 31 December 2018.
 

 

• Top-line growth of 2.9% and increase in Profit Before Tax* (PBT) of RM11.3 million, underpinned by stability of the office segment and resilience of the retail segment

 

• Suria KLCC stayed true to form of a landmark mall with a 4.0% revenue and PBT growth from higher occupancy and rents becoming effective during the year

 

• Steady growth in revenue of hotel segment from newly renovated guestrooms, setting pace gain

 

• Strong revenue growth of 10.6% in the management services segment with new contracts under facilities management fuelling growth

 

Performance Review
 
KLCCP Stapled Group sustained a credible performance, recording an increase in Profit Before Tax (PBT) excluding fair value gain of RM11.3 million for the financial year ended 31 December 2018.  The Group posted a revenue of RM1.4 billion, a growth of 2.9% Year-on-Year (YoY) underpinned by the stability of the office segment and resilience of the retail segment.
 
In tandem with the Group’s steady performance and commitment in delivering value and growth, KLCCP Stapled Group distributed 37.00 sen in distribution per stapled security, an increase of RM15.4 million from the preceding year.  This reflects a full year dividend payment of RM668.0 million.
 
Driven by its solid 100% occupancy with top quartile rental profile leases, the office segment continued to be the main revenue driver with a contribution of 43% of KLCCP Stapled Group’s overall revenue.  The full year impact from the uplift in rental rate for Menara 3 PETRONAS and the full occupancy of Menara ExxonMobil following the tenant transitioning in 2017 contributed to the steady performance of the office segment.
 
The retail segment, represented by Suria KLCC and the retail podium of Menara 3 PETRONAS contributed 35% to the overall KLCCP Stapled Group’s revenue.  With its sheer resilience, Suria KLCC maintained its competitiveness, posting a 4.0% YoY growth in revenue and PBT, arising from higher rents becoming effective during the year and higher occupancy at 98%.  Suria KLCC together with the retail podium of Menara 3 PETRONAS sustained its Total Moving Annual Turnover exceeding RM2.6 billion.
 
Mandarin Oriental, Kuala Lumpur (MOKL Hotel) recorded a steady revenue growth of 3.1% on the back of higher room revenue following the full completion of the guestroom renovation.  PBT however was impacted by the increase in depreciation expenses arising from the fully renovated guestrooms. 
 
The Group’s Management Services segment comprising facilities management and car parking management registered an increase of 10.6% from the previous year, attributable to new contracts under the facilities management operations for the “Workplace for Tomorrow” (WFT) project and PETRONAS one-off projects in Terengganu. 
 
THE PLACE – Creating Places People Look Forward To
 
In our quest to transform KLCC into THE PLACE people look forward to, we continued to reposition our assets to unlock value and introduced differentiation which has brought about greater experiences for our stakeholders - creating a work place for tomorrow at our office buildings, repurposing the retail space, personalising offerings and quality guest experience and elevating quality of service and operational efficiency.
 
Office
 
In envisioning the office of tomorrow, we create workplaces that embody the evolving needs of our tenants which foster collaboration and flexibility.  We progressed with creating the “Workplace for Tomorrow” for our tenant, PETRONAS at all our office buildings, which saw 52% completion as at 2018, with expected full completion by end of this year.
 
Retail
 
Suria KLCC continued its focus on delivering value for retailers through reinventing store experience for the connected customer, curating the retail space with a wider array of retail offerings, tailored to customer preferences.
 
During the year, Suria KLCC welcomed 28 new tenants with nine (9) first-to-market stores in Malaysia and exclusive to Suria KLCC, in line with its positioning of “Always Something New”.  Suria KLCC also elevated its Food and Beverage (F&B) offerings by bringing on board six (6) new F&B concepts.  The mall also witnessed the opening of several duplex stores featuring a new retail concept to deliver a unique customer experience.  In enhancing digital experience, Suria KLCC installed the largest rotating double-sided LED screen in the world at its centre court, facilitating retailers’ promotions and advertising. 
 
Hotel
 
2018 marked the full completion of MOKL Hotel’s master plan refurbishment which commenced in 2011.  The master plan refurbishment involved the reconfiguration of the original mix of rooms and suites to meet the current and future demand which included a Presidential Suite in addition to the Royal Suite, amongst the Club and Park Suites and Deluxe rooms.  The newly renovated guestrooms are driving the healthy pace gain for stronger demand with a 7% increase in guest satisfaction to 92%.
 
MOKL Hotel also embraced new systems and digital technology to promote hotel offerings and make guests’ journey seamless through the launch of its new loyalty program, “Fans of MO” and smart and eco-conscious technology applications for guestrooms and conference room facilities.
 
Management Services
 
The management services segment comprising facilities management and car parking management continue to deliver premium asset management services to KLCCP Stapled Group.  Our car park management introduced cashless payment initiatives by installing the integrated credit/debit card and Touch n Go readers at entry and exits terminals within the North West Development basement car park. Our car park management company also implemented the first-ever virtual Parking Management System in Malaysia utilising a private cloud, which is centralised and managed by our internal ICT experts.  This initiative is also part of our Business Continuity Plan in mitigating cybersecurity risk.   
  
Outlook for 2019
 
Whilst the challenging environment is expected to continue in 2019, KLCCP Stapled Group remains cautiously optimistic on the prospects of the overall market, in light of the intensifying competition in the market. The Group will remain steadfast to focus on our core competencies in our key market segments to position and adapt ourselves to the new pace of change.
 
Our high quality office portfolio, reinforced by long term tenancies will continue to drive stable growth for the Group. The recently completed refurbished rooms at MOKL Hotel will provide the hotel segment the opportunity to compete in a more challenging market with additional rooms from new competitors. The retail segment is expected to maintain its competitiveness, focusing on its repositioning efforts to create differentiation in consumer offerings. 
 
“I believe our aspiration to transform KLCC Precinct into THE PLACE and stay relevant, will continue to inspire us to deliver strong results for our stakeholders, turn customer experiences into a competitive differentiator and ensure we have a sustainable business well positioned for the future” – Datuk Hashim Wahir, CEO, KLCC Property Holdings Berhad.
 
About KLCCP Stapled Group
 
KLCC Property Holdings Berhad (KLCCP) and KLCC REIT, collectively known as KLCCP Stapled Group is Malaysia’s largest self-managed stapled security that invests, develops, owns and manages a stable of iconic and quality assets.
 
KLCCP Stapled Group became the first ever Shariah compliant stapled structure in Malaysia upon the listing of KLCC Stapled Securities (KLCCSS) on 9 May 2013.  KLCCSS trades as a single price quotation under the REIT sector on Bursa Malaysia and constitutes 34% of the market capitalisation of the Malaysian REIT segment.
 
With KLCCP Stapled Group’s core business in property investment and development, the Group has a diverse property portfolio largely located within the Kuala Lumpur City Centre comprising prime Grade A office buildings, a premier retail mall and a luxury hotel.  The stabilised and wholly-owned assets namely PETRONAS Twin Towers, Menara ExxonMobil and Menara 3 PETRONAS are under KLCC REIT and the non-wholly owned assets and assets with development and redevelopment potential, Suria KLCC, Mandarin Oriental, Kuala Lumpur hotel and a vacant land (Lot D1) are in KLCCP.  KLCCP also has a 33% stake in Menara Maxis. 



Two of KLCCP’s wholly-owned subsidiaries, namely KLCC Urusharta Sdn Bhd and KLCC Parking Management Sdn Bhd, are engaged in providing facility management services and car parking management services respectively.  The REIT Manager who is engaged to manage and administer KLCC REIT is internal and resides within KLCCP as a 100% owned subsidiary. 

KLCC Stapled Group is continuously recognised for its excellence in the industry and remains a constituent of the FTSE4Good Emerging Index for demonstrating strong environmental, social and governance practices.
 
Issued by:
Corporate Communications
Investor Relations and Business Development Department
3 April 2019


SOURCE : KLCC Property Holdings Berhad

FOR MORE INFORMATION, PLEASE CONTACT:
Name : Ms. Bindu Menon
Head
Investor Relations and Business
Development Department
KLCC Property Holdings Berhad
Tel :  +603 2783 7291  
Email :  bindu@klcc.com.my

Name : Ms. Yasmin Abdullah
Corporate Communications
Investor Relations and Business 
Development Department
KLCC Property Holdings Berhad
Tel : +603 2783 7584 
Email : yasmina@klcc.com.my

--BERNAMA