KUALA LUMPUR – The KLCCP Stapled Group (KLCCP), comprising KLCC Property Holdings Bhd and KLCC REIT, saw its net profit decline to RM432.17 million for the financial year ended December 31 (FY20) from RM790.15 million recorded a year ago.
Revenue for the period under review fell to RM1.23 billion from RM1.42 billion previously, it said in a filing to Bursa Malaysia yesterday.
For the fourth quarter ended December 31, KLCCP recorded a net loss of RM41.83 million versus a net profit of RM244.41 million, while revenue fell to RM304.71 million from RM364.96 million previously.
Commenting on the performance of its hotel segment, the group said the hotel segment continues to operate in a challenging environment.
“Mandarin Oriental Kuala Lumpur will continue to focus on the local and domestic market until the government reopens the border for international arrivals. Suria KLCC will continue to leverage on its strategic location and its completed anchor-to-specialty reconfiguration,” it added.
Going forward, its directors remained cautious due to current market sentiment and consumers’ spending behaviour.
The group's office segment is expected to remain stable backed by the triple net lease agreements and long-term leases.
“The extension of the triple net lease by Petronas in both the Petronas Twin Towers and Menara 3 has further strengthened the stability of the group’s investment in the office segment for the next 15 years after the expiry of the current term in 2026/2027,” it said. – Bernama, January 28, 2021
