This article first appeared in The Edge Financial Daily on August 16, 2018

KUALA LUMPUR: KLCCP Stapled Group, comprising KLCC Property Holdings Bhd (KLCCP) and KLCC Real Estate Investment Trust (REIT), saw its net profit rise by a marginal 0.7% to RM179.15 million in the second quarter ended June 30, 2018 (2QFY18) from RM177.96 million a year ago, reflecting the 100% occupancy in Menara ExxonMobil since April 2017, as well as higher rental rates and occupancy rates.

This resulted in a higher earnings per share of 9.92 sen for 2QFY18 compared with 9.86 sen for 2QFY17.

Quarterly revenue rose 2.2% to RM345 million from RM337.52 million in 2QFY17, contributed mainly from the additional contracts in the management services segment and stronger revenue from the hotel segment.

KLCCP and KLCC REIT also declared a second interim dividend and income distribution of 2.98 sen and 5.72 sen respectively, amounting to 8.7 sen per stapled security, for the financial year ending Dec 31, 2018 (FY18), payable on Sept 28.

 For the cumulative six months (1HFY18), the group’s net profit grew 1.4% to RM359.82 million from RM354.68 million a year ago, while revenue increased 2.4% to RM690.11 million from RM674.18 million in 1HFY17.

On prospects, KLCCP Stapled Group expects its performance to remain stable on the back of long-term lease arrangements, anchored by the office segment.

 Shares in KLCC Stapled Group closed 0.26%, or two sen, higher at RM7.62 yesterday, for a market capitalisation of RM13.76 billion.