KLCC Second Quarter Revenue Increases With Higher Footfall And Steady Rentals

Suria KLCC Shopping Mall, Kuala Lumpur, Malaysia, Southeast Asia, Asia

KLCCP Stapled Group announced its financial results, showing encouraging momentum for the second quarter, recording a revenue of RM280.2 million, up 4.8% while Profit Before Tax increased 5.0% to RM172.1 million against 163.8 million compared to the same periond last year.

The increased in performance was attributable mainly to the retail segment and improved performance of hotel in the month of April prior to the resurgence of Covid-19 cases in May and the subsequent Full Movement Control Order which commenced in June.

As for the office segment, helmed by the Petronas Twin Towers, Menara 3 Petronas, Menara ExxonMobil and Menara Dayabumi remained stable and saw minimal impact backed by its locked-in long-term tenancies and the Triple Net Lease (TNL) of the Petronas Twin Towers and Menara 3 Petronas. However, the revenue and PBT decreased slightly by 2.7% and 2.9% respectively, as compared to the second quarter last year due to the accounting adjustments to reflect the extension of TNL agreements for the towers for another 15 years upon the expiry of the current term.

Suria KLCC and the retail podium which represents the retail segment, saw revenue and PBT increased by 14.2% and 19.0% respectively, attributable to lower provision of tenant assistance and higher take up rate for promotion and internal advertising space compared to the corresponding quarter last year. Despite being impacted by MCO 3.0, the mall’s footfall increased by 22%, driven by sales campaigns during the Hari Raya festive season and shopper reward-driven campaigns. Also the month of April saw additional flow of traffic from the ongoing vaccination programmes at the Twin Tower Medical Centre and Kuala Lumpur Convention Centre.

The increase in tenant sales by 52% was contributed mainly by Food and Beverage (F6B), jewellery, fashion, and cinema. This year 8 new tenants joined the mall including Sandro, a modern and sophisticated fashion store, Maje, an ultra-stylish and effortlessly chic fabric, Dubuyo, the urban Korean food and Empire Sushi.

KLCC owned hotels, benefited from the relaxation of restrictions reporting a higher revenue of RM8.5 million from RM3.5 million in second quarter last year. The improved occupancy picked up in March and peaked in April to a high of 26% contributed by the enhanced locally tailored staycation promotions.

In the management services segment, which comprises facility management and car parking management services, the quarter recorded an increase of 5.6% in revenue to RM59.0 million and 11.0% in PBT to RM17.6 million, mainly from additional facilities management services coupled with increased parking income from transient parkers coming for their vaccination at the Twin Tower Medical Centre and Kuala Lumpur Convention Centre.

The remaining period of the year will continue to be challenping due to the Covid-19 pandemic. However, with the good progress on the National Covid-19 Immunisation Programme, the Group believe that it will prevent the situation from deteriorating further. The recovery of hotel and retail segments will be influenced by the ease of movement restrictions.

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