KLCCP Staple reported its fourth quarter and full year results, revenue for Q4 grew from RM413.3 million to RM442 million in 2023, PAT rose to RM384 million from RM279 million recorded in the same period last year.
As for YTD, the group saw its revenue jump from RM1.45 billion to RM1.61 billion while PAT also rose to RM931 million from RM782 million in 2022.
The group said the improved performance for the quarter was primarily contributed by improvement in the hotel and retail segments. The hotel achieved higher occupancy coupled with higher Average Room Rate (ARR) while the retail
segment recorded improvement in occupancy and tenants’ sales. The overall profitability was higher despite the rise in utility costs across all business segments. The rise in utility was primarily caused by the hike in the Imbalance Cost Pass-Through (ICPT) earlier this year.
During the quarter, the Group has also recognised fair value gain of RM221.9 million arising from the overall improvement in the market value of the investment properties. Including the fair value adjustments, PBT for the quarter increased to RM470.4 million, 30.8% higher than same period last year
As for outlook, KLCCP remains optimistic with Gross Domestic Product (GDP) projected to grow between 4% to 5%. This outlook aligns with MIDF Research’s forecast of a 7.5% growth in Malaysia’s retail trade in FY2024 driven by resilient consumer demand and moderating of inflationary pressure. Furthermore, the recent relaxation of visa entry for tourists from China and India is anticipated to further boost the economic growth.
Mandarin Oriental is anticipated to continue its positive performance, supported by its strategic partnerships in the KLCC precinct and commitment in delivering excellent hospitality. The hotel’s plans to implement diverse promotional programs will reinforce its leading position in the market.
Suria KLCC will prioritize tenants’ sustainability, operational efficiency and tailored marketing initiatives to attract footfall and boost tenants’ sales.
Notwithstanding, customer purchasing power remains uncertain amidst the review of subsidies, expansion of service tax, High Value Goods Tax (HVGT) and foreign exchange rate fluctuations. Nevertheless, the Directors maintain a sanguine outlook for the Group, anticipating positive performance in 2024 leveraging on Group’s iconic assets, long-term and triple net lease arrangements; all serving as robust foundation for success.
The group declared a full year dividend of 40.50 sen its highest since listing in 2013.
