KLCCP Stapled Group delivered a solid performance for the first quarter ended 31 March 2025, supported by robust gains in its retail segment despite seasonal headwinds in its hotel division.

The Group posted revenue of RM406.9 million and Profit Before Tax (PBT) of RM233.5 million. While this reflected a marginal decline compared to the corresponding period last year—attributed to higher financing costs and softer seasonal hotel performance—the Group’s profit attributable to equity holders (PATMI) increased 7.2% to RM201.5 million, driven by gains from the acquisition of the remaining 40% stake in Suria KLCC. A higher dividend of 9.20 sen per stapled security was declared.

The retail segment, anchored by Suria KLCC and the retail podium of Menara 3 PETRONAS, recorded revenue of RM143.2 million, up from RM140.5 million a year ago. PBT rose by 5.3% to RM114.7 million, bolstered by higher base rents from tenancy renewals and improved occupancy levels at Menara 3 PETRONAS.

The mall’s vibrant tenant strategy added five new brands this quarter: Japan’s leading conveyor-belt sushi chain Sushiro, fast food sushi brand Mr Makii Man, banana leaf restaurant Spice Guys, teahouse chain Chagee, and Adidas Originals.

Hotel Segment Temporarily Weighed Down by Renovation Works

The Mandarin Oriental Kuala Lumpur, representing KLCCP’s hotel segment, reported revenue of RM46.9 million but registered a pre-tax loss of RM4.8 million. The dip was attributed to moderate seasonal demand and the temporary closure of the Grand Ballroom for renovations, which were completed in April.

The upgraded Grand Ballroom and MO Club Lounge are expected to enhance guest experiences and improve performance in the coming quarters.

Office and Services Segments Provide Stability

The office portfolio, comprising PETRONAS Twin Towers, Menara 3 PETRONAS, Menara ExxonMobil, and Menara Dayabumi, maintained a stable performance underpinned by long-term Triple Net Lease agreements. The segment posted revenue of RM146.2 million and PBT of RM120.9 million.

Meanwhile, the management services segment—which includes facilities and car park management—reported revenue growth of 9.3% to RM90.2 million. PBT held steady at RM20 million, supported by increased activities and the addition of 356 new parking bays.

Despite macroeconomic challenges, the group remains cautiously optimistic about its outlook for 2025. Suria KLCC plans to drive engagement through immersive retail campaigns and brand activations. MOKUL aims to capitalise on its newly enhanced facilities to attract high-end events and guests.

Chief Executive Officer Datuk Sr Mohd. Salem Kailany said, “Despite the Group’s softer performance in the first quarter, we remain positive in delivering solid performance underlined by the resilient foundation of our business segments. With focus on growth and sustainable value creation, we are unlocking the full potential of our assets and reimagining our spaces to consistently exceed customer expectations.”

Source: KLCCP Kicks Off Year With Steady PATMI Of RM201 Million