Quarter Four, 2021 vs Quarter Four, 2020 Performance
KLCCP Stapled Group finished the year with its best performance for the quarter which saw the Group’s retail and hotel segments rebound, following the transition to Phase 3 and subsequently Phase 4 of the National Recovery Plan in October 2021. The Group posted revenues of RM348.2 million, higher by 14.3% and PBT rose to RM64.0 million compared to a loss of RM44.7 million in the corresponding quarter of 2020.
The office segment anchored by its long-term Triple Net Lease agreements registered a revenue increase to RM145.4 million during the quarter while PBT soared to RM117.4 million from RM32.7 million compared to quarter four, 2020. This was mainly attributed to lower finance cost and minimal impairment recorded on the Phase 3 Redevelopment of Kompleks Dayabumi.
Suria KLCC and the retail podium of Menara 3 PETRONAS which represents the retail segment also saw a surge in revenue of 21.7% to RM120.0 million while PBT jumped 34.4% to RM87.2 million driven by improved footfall and tenant sales, coupled with higher advertising income. During the quarter, Suria KLCC welcomed seven new tenants, ranging from F&B outlets to fashion accessories namely Evisu, a Japanese fashion store and fashion accessories store, Amaris Beauty, Oakley and Charles & Keith. The mall saw encouraging recovery during the quarter supported by the year-end festive season and shoppers reward campaigns which drove footfall and significant direct sales for our retail partners.
In the hotel segment, Mandarin Oriental, Kuala Lumpur (MOKL Hotel) saw encouraging improvement with the highest revenue for the quarter performance, growing from RM9.7 million in quarter four, 2020, to RM23.0 million, from increased occupancy and improved Food & Beverage (F&B) performance. Occupancy for the month of December 2021, peaked to 36.2%, which saw significant take-up of high-yielding rooms. The F&B growth was mainly boosted by the reopening of its Mosaic, Mandarin Grill, banqueting events held and higher growth in Mandarin Online Shop due to its extended offerings. The Tatler House collaboration also contributed to the hotels’ performance with five high-end events held during the quarter.
Under the Management Services segment, revenue recorded an increase of 17.3% mainly from the additional services secured in facilities management and higher car park income in line with the reopening of economic activities. However, PBT decreased marginally by 5.4% due to the one-off adjustment made in a facility management work.
Year-to-Date, 2021 Performance
With the strong performance in quarter four 2021, KLCCP Stapled Group closed the year ended 31 December 2021 with revenue of RM1.2 billion, lower by 5.5% and PBT of RM565.8 million, an increase of 3.5% YoY, despite operating in a full year impact of COVID-19 environment. The Group upheld its commitment to deliver sustainable returns to its shareholders with a 95% distribution of its distributable income, bringing the total distribution to 33.60 sen per stapled security for the year, a growth of 12% from 2020, which translates to a full year dividend payment of RM606.6 million.
Prospects
Despite operating under a very challenging market landscape and the prolonged pandemic, the Group expects to continue the recovery momentum in its business segments, riding on the improved consumer confidence following the country’s high vaccination coverage and the on-going efforts in booster shot roll out.
“The Group’s encouraging fourth quarter results reflect the strength of our resilient business, dedicated to creating long-term values for our shareholders. We are looking into resetting our priorities and positioning our growth trajectory, building on the positive outlook for REITs in the year ahead. Riding on this positive momentum, we will continue our recovery efforts and work collaboratively with our customers for mutually beneficial outcomes.”
Md. Shah Mahmood, Chief Executive Officer, KLCC Property Holdings Berhad
