KLCCP Stapled Group is confident about experiencing progressive improvement across its business segments this year, with the country's transformation to the endemic phase and international borders reopening.
Md Shah Mahmood, the chief executive officer of KLCC Property Holdings Bhd (KLCCP) said that the return of office tenants from November 2021 has been encouraging.
He predicts a gradual increase in retail and hotel activity.
Suria KLCC will continue to create a world-class consumer experience by bringing in first-to-market brands to improve foot traffic and tenant sales.
The Mandarin Oriental, Kuala Lumpur (MOKL) will continue to cater to the leisure needs of the local community. As the borders globally reopen, it is expected to ramp-up in the Asia Pacific region, he said.
To position itself for the future of hospitality, Md Shah said the hotel would continue its efforts on digital outreach through direct marketing channels and be inventive in its services and strategic collaborations.
The KLCCP Stapled Group, which includes KLCCP and KLCC Real Estate Investment Trust (KLCC REIT), is Malaysia's largest self-managed stapled security, investing in, developing, owning, and managing a stable of iconic and quality assets.
PETRONAS Twin Towers, Menara ExxonMobil, and Menara 3 PETRONAS are among the stabilised and wholly-owned assets held by KLCC REIT. The KLCCP covers non-wholly owned assets and assets with development and redevelopment potential, such as Suria KLCC, MOKL, and unoccupied land (Lot D1).
Menara Maxis is also owned by KLCCP, which holds a 33 per cent share.
With a refreshed "strategic agenda" and completion of a group-wide transformation, Md Shah said KLCCP Stapled Group is positioning itself as a customer-centric organisation in driving its commercial, project, and operational excellence.
"With the fast pick-up in economic activities and the reopening of international borders, we are confident that these will further drive recovery, particularly for our retail and hotel segments. The positive outlook of REITs and market trends will further support our strategic agenda as we re-evaluate our existing portfolio of assets and explore new potential quality assets to position for growth and build on the momentum for a brighter year ahead," he said
KLCCP Stapled Group had its annual general meetings today, presenting its performance for the fiscal year 2021 (FY2021) to its shareholders.
In FY2021, the Group generated RM1.2 billion in revenue. Its resiliency was exhibited with a pre-tax profit of RM712.5 million, up 3.2 per cent from the previous year, centred on the solid office segment, supported by full occupancy and long-term leases.
The office segment continued to be the most important contributor to the Group's profits, accounting for 49 per cent of total sales.
According to Md Shah, the year 2021 will be focused on helping the Group's stakeholders.
"We prioritised our tenants' and customers' safety and wellness and retail partners' survivability. The Group extended over RM127.1 million in rental assistance, 36 per cent more than 2020, to ensure our retail tenants sustain their business and the mall's occupancy is maintained," he said.
Md Shah said even though 2021 saw far fewer working days due to the various lockdowns and movement restrictions that impacted the retail and hotel segments, both saw a pick-up in momentum in the final quarter of the year, capping the year with their best performance in December 2021.
The Group delivered sustainable value to its holders of Stapled Securities with a dividend of 33.6 sen per stapled security, amounting to a full-year dividend payment of RM606.6 million, 12 per cent higher than 2020.