KUALA LUMPUR: The retail and hospitality businesses of KLCCP Stapled Group are expected to continue their recovery with the arrival of the festive and holiday season.
Announcing its results for the third quarter ended Sept 30,2022, KLCC Property Holdings Bhd CEO Md Shah Mahmood said there were improvements in both retail and hotel operations following the easing of travel restrictions and the return of international travellers to Malaysia since Aug 1, 2022.
"The encouraging performance, particularly from the retail and hotel segments gives the group the confidence that we are on track towards recovery," he said.
He added that the office segment is expected to remain stable with full occupancy and long-term leases, which will maintain stable cash flow.
However, Md Shah acknowledged that the recovery may be encumbered by the increasing business and labour costs, rising interest rates and the uncertainty in Covid-19 cases.
For the quarter under review, the group posted a net profit of RM176.59mil, a 30.43% increase from the previous corresponding quarter.
Earnings per share rose to 9.78 sen from 7.5 sen in the comparative quarter.
The group reported revenue of RM373.98mil, a 43.65% improvement year-on-year.
A third interim income distribution of eight sen per stapled security was declared, bringing the total to 24 sen for the first nine months of 2022.
In the retail segment, Suria KLCC and the retail podium of Menara 3 PETRONAS saw a 96.1% jump in revenue to RM133.6mil. Pre-tax profit tripled to RM107.8mil due to improved tenant sales.
The hotel segment, represented by Mandarin Oriental Kuala Lumpur, recorded a surge in revenue to RM45.8mil compared to RM5.9mil in the same quarter in 2021.
This was underpinned by a higher average occupancy of 55% compared with 7% in 3Q21 and higher F&B covers from the return of international travellers.
