KUALA LUMPUR: KLCC Real Estate Investment Trust's (KLCC REIT) net profit dropped 22.13 per cent to RM140.46 million in the second quarter (Q2) ended June 30, 2020 from RM180.38 million recorded a year ago.
In an exchange filing today, KLCC REIT said this was mainly dragged by lower contribution from its property investment segment due to the provision of rental assistance to the tenants in response to the Movement Control Order imposed by the government in curbing the spread of Covid-19.
Its Q2 revenue dropped 23.9 per cent to RM267.25 million from RM351.10 million due to lower contribution from its hotel operations and advertising income.
For the first six months, KLCC REIT's net profit fell 12.9 per cent to RM317.34 million from RM364.33 million, while revenue decreased 11.7 per cent to RM621.84 million from RM704.54 million.
KLCC REIT remains cautious over the rest of the year due to the diminishing consumer's spending power as a result of increasing unemployment rate.
It said the offices surrounding the mall had yet to fully reopen as most companies were implementing flexible working arrangement.
"We opine that the retail segment will remain challenging for the rest of the year. Hospitality and tourism industries will continue to be affected as Malaysia's border remained close and large public events are discouraged."
KLCC REIT expects the hotel segment to continue to be adversely affected, while the office segment o remain stable on the back of long-term tenancies.