KUALA LUMPUR, Aug 15 (Bernama) -- KLCCP Stapled Group posted higher quarterly revenue of RM394.6 million for the second quarter 2023 (2Q 2023) driven by improved performance across all business segments buoyed by the upswing in business and Meetings, Incentives, Convention and Exhibition (MICE) activities.  The Group’s performance saw steady momentum and remained resilient, marking significant growth in the hospitality and management services segments with an overall 12.7% increase from RM350.3 million in quarter two, 2022.
 
Profit Before Tax (PBT) rose 7.8% to RM236.4 million, reflecting the efforts of the Group’s curated marketing promotions and initiatives in driving stronger customer experience and footfall.  The Group declared a dividend of 8.80 sen per stapled security, 10.0% higher from quarter two, 2022, bringing the total to 17.30 sen for the first half 2023.
 
A resilient quarter, signifying a healthy and stable growth
 
Commenting on the Group’s performance, Chief Executive Officer, Datuk Md. Shah Mahmood said, “the Group achieved higher revenue, underpinned by the resilient portfolio performance across all business segments, led by the hotel and management services segments.  Following the encouraging performance in quarter one, we continued our focus on operational excellence, capitalising on the upsurge in tourism, MICE activities, increasing consumer demand for events, and the improving economic climate.”
 
The hotel segment, represented by Mandarin Oriental, Kuala Lumpur (MOKL), continued to record a robust performance during the quarter on the back of higher occupancy of 48.0% compared to 43.0% in quarter 2, 2022 and increase in MICE and banqueting activities.   The vigorous pick up in events, coupled with promotional offerings, have collectively led to a strong top-line for the hotel, with a 39.2% increase from the second quarter last year. 
 
The management services segment comprising the facilities management and the car parking management services saw revenue and PBT increase by 43.7% and 33.3% respectively, contributed by maintenance activities undertaken during the quarter and improved car park revenue with the increase in transient and season car park customers.
 
Suria KLCC and the retail podium of Menara 3 PETRONAS which represent the retail segment, recorded higher revenue of RM128.5 million, an increase of 2.6% compared to quarter two, 2022 with PBT improving to RM97.2 million. The malls engaged its shoppers through campaigns and events activation which drove higher tenants’ sales and increased footfall to the mall.  12 new tenants strengthened the mall’s tenant mix and contributed to the higher occupancy of 96.0%. They include popular F&B and fashion outlets namely TGI Friday, Tien (authentic Fujian cuisine), Padi House (traditional authentic Malaysian cuisine) and Ralph Lauren.
 
The office segment remained stable, backed by the Triple Net Lease (TNL) arrangement and long-term leases of its office assets namely, PETRONAS Twin Towers, Menara 3 PETRONAS, Menara ExxonMobil and Menara Dayabumi.   These office assets continued to anchor the Group’s stable performance, recording an increase in revenue and PBT of RM145.4 million and RM119.6 million respectively.
 
Prospects
The Group expects the positive growth momentum to continue to the next quarter with the resurgence of domestic and international MICE activities, events, and tourism. 
 
The retail segment is well positioned for continued growth with its strategy in place combined with a vibrant mix of well-curated tenants.  Backed by its robust brand reputation and strategic collaborations, MOKL anticipates sustained growth and favourable performance in the next quarters. 
 
The Group remains confident to adapt to market conditions towards sustainable growth despite inflationary pressures and rising costs and expects its performance to remain stable heading into the second half of the year.  

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 and trades under the REIT sector of the Index as a single price quotation.
 
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.  

KLCCP Stapled Group

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.  
 
KLCCP Stapled Group is continuously recognised for its excellence in the industry for demonstrating strong environmental, social and governance practices. In pursuing its sustainability journey, the Group aligns its reporting to the United Nation‘s 2030 Agenda across four critical dimensions - Prosperity, Planet, People, Partnership and Peace, in line with its commitment to contribute towards the five prioritised United Nation’s Sustainable Development Goals.  KLCCP Stapled Group is also a member of the United Nations Global Compact Malaysia (UNGCmy). For a better insight into the Group‘s ESG Profile and Disclosures, please visit ESG World at https://www.klcc.com.my/sustainability.html.
 
Issued by:
Group Strategic Communications & Investor Relations
14 August 2023
 
SOURCE: KLCC (Holdings) Sdn Bhd

FOR MORE INFORMATION, PLEASE CONTACT:
Name: Yasmin Abdullah 
Tel: 03 2783 7584
Email: yasmina@klcc.com.my

Name: Nur Diana Alia Othman
Email: nurdianaalia.othma@klcc.com.my 

--BERNAMA