This article first appeared in The Edge Financial Daily on May 17, 2018

KUALA LUMPUR: KLCCP Stapled Group, comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust (REIT), posted a marginal 2.2% increase in net profit to RM180.67 in the first quarter ended March 31, 2018 (1QFY18) from RM176.73 million a year ago, on improved occupancy at Menara ExxonMobil here and lower finance costs.

Earnings per share were higher at 10.01 sen in 1QFY18 compared with 9.79 in 1QFY17. Quarterly revenue grew 2.5% to RM345.11 million from RM336.66 million a year ago.

The group also declared a first interim distribution per stapled security of 8.7 sen for FY18, payable on June 29. Of this amount, dividend declared by KLCC Property stood at 2.98 sen, while KLCC REIT declared an income distribution of 5.72 sen.

In a filing with Bursa Malaysia yesterday, KLCCP Stapled Group said the improved quarterly results reflected the full occupancy of Menara ExxonMobil compared with 1QFY17 when it was 60% occupied, as well as lower finance costs as repayment of borrowings was made in April last year.

Going forward, the group expects its overall performance to remain stable as it continues to leverage on the long-term profile of office leases.

“The retail segment will continue to trade in challenging market conditions and is not expected to report significant growth,” it said.

“The hotel performance is expected to benefit from the refurbished rooms. The refurbishment of the rooms is currently still ongoing and is expected to be completed by the end of 2018.

“However, this segment will continue to be impacted by competitive market conditions,” it added.