BUSINESS

KLCCP STAPLED GROUP'S Q2 PROFIT FALLS 22 PCT

05/08/2020 08:11 PM

KUALA LUMPUR, Aug 5 -- KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust (KLCC REIT), collectively known as KLCCP Stapled Group, recorded a 22 per cent year-on-year drop in net profit to RM140.46 million for the second quarter (Q2) ended June 30.

This was mainly due to the sharp decline in the performance of the hotel and retail segments arising from the COVID-19 pandemic and Movement Control Order (MCO), it announced to Bursa Malaysia today.

Revenue declined to RM267.25 million from RM351.09 million previously.

The group said its hotel operations, represented by Mandarin Oriental Kuala Lumpur, widened its pre-tax loss to RM20.45 million in Q2 2020 from RM816,000 a year earlier while the retail segment's pre-tax profit was halved to RM47.49 million.

However, the office segment comprising the Petronas Twin Towers, Menara 3 Petronas, Menara ExxonMobil and Menara Dayabumi remained resilient, underpinned by full occupancy and long-term locked-in leases. Its pre-tax profit was almost flat at RM121.11 million. 

KLCCP Stapled Group said all tenants of Suria KLCC had reconvened business and customer counts improved in June as the MCO eased up gradually. 

The group said it remained cautious, noting the diminishing consumer’s spending power as a result of the increasing unemployment rate and the offices surrounding the mall had yet to fully reopen as companies were implementing flexible working arrangements. 

"The directors opine that the retail segment will remain challenging for the rest of the year.

"Hospitality and tourism industries will continue to be affected as Malaysia's borders remain closed and large public events are discouraged," it said. 

Meanwhile, the office segment is expected to remain stable on the back of long-term tenancies.

At the close, KLCC Property and KLCC REIT added 2 sen to RM7.76 with 653,400 shares changing hands.

-- BERNAMA

 

 


 


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