Latest news with #KLCCPropertyHoldingsBhd
The Sun
29-04-2025
- Business
- The Sun
KLCCP Stapled Group expects rental rates for its office assets to rise this year
KUALA LUMPUR: KLCCP Stapled Group – an integrated structure comprising KLCC Property Holdings Bhd (property development and management) and KLCC Real Estate Investment Trust (rental income generation) – expects rental rates for its office segment to rise this year, supported by ongoing asset rejuvenation and modernisation efforts. CEO Datuk Mohd Salem Kailany said its rental reversion continues to trend upwards despite rising costs and broader global economic uncertainties. 'How we build our value proposition is by rejuvenating and refurbishing our assets to be more modern and market-ready. We are positioning our properties on a higher pedestal compared to the market, and therefore we are able to command higher rents corresponding to the improvements we have made,' he said in a press conference after the group's annual general meeting today. Mohd Salem said the group's capital deployment this year will focus primarily on asset rejuvenation and refurbishment that are part of its normal budget cycle rather than new capital expenditures. 'This is where we will continue to focus. What you see is a defensive stock, stable and delivering high-yielding dividends. The essence of the company will be preserved. Given the trust placed in us, I believe we are on the right path, and we will continue doing things the way they are.' He added that shareholders observed the group has good tenants and stable companies. 'The tenancy arrangements for the office segment are largely based on triple net lease structures and long-term leases. Some of those upgrading costs will be borne by the tenants.' Apart from that, Mohd Salem said, retail asset upgrades are ongoing, with escalator replacements completed and toilet refurbishments under way. Chairman Datuk Annies Md Ariff said the group continues to maintain the strong quality of its assets, with its office segment operating at 100% occupancy. 'We have strong quality assets. We need to do something to always maintain its strong quality.' As for retail, he said the occupancy rate is 99%, while driving higher customer engagement and footfall of over 50 million visitors. 'All in all, we are positive about our outlook moving forward. At the same time, we remain focused on safeguarding and strengthening the assets we already have.' The group achieved sterling results in the financial year ended Dec 31, 2024 with record-breaking revenue, profit, and dividend since its listing. Revenue saw a 5.7% year-on-year increase, hitting RM1.7 billion, while profit before tax rose to RM1.2 billion. In line with this performance, the group declared its highest-ever dividend payout of 44.50 sen per stapled security, a 9.9% increase from 2023. Mohd Salem commented that during the year the group deployed the right strategies, elevated the customer experience, and ensured assets remained in pristine condition, driving the strength in its properties and business growth.
New Straits Times
29-04-2025
- Business
- New Straits Times
KLCC Property focuses on asset rejuvenation, modernisation
KUALA LUMPUR: KLCC Property Holdings Bhd (KLCCP) is maintaining a selective yet strategic approach as it explores potential new assets as part of its long-term portfolio expansion. The company remains open to opportunities that align with its core strengths and disciplined investment strategy, chairman Datuk Annies Md Ariff said. KLCC Property is exercising prudent capital management, with this year's focus firmly placed on asset rejuvenation and modernisation within the planned budget cycle, he added. "We will continue to maximise our asset potential through regeneration and modernisation efforts, leveraging strategic collaborations to deliver unique customer experiences," he said at a press conference after its annual general meeting today. Chief executive officer Datuk Mohd Salem Kailany said no new acquisitions are currently under consideration. "No current acquisition plans, locally or overseas. Earnings growth will be driven by our core strength and disciplined execution. We remain focused on being a stable, high-yielding and defensive stock. "A major step we took during the year was the acquisition of the remaining 40 per cent equity in Suria KLCC, enabling more dynamic mall management which led to a 99 per cent occupancy rate and over 50 million footfall last year," he added. For the financial year ending December 31, 2024, KLCC Property recorded a 5.7 per cent year-on-year revenue increase to RM1.7 billion, rising from RM1.62 billion in 2023. Its pre-tax profit climbed to RM1.2 billion, a modest 1.2 per cent growth compared to RM1.19 billion in the previous year. In line with the results, the company declared a record high dividend payout of 44.50 sen per stapled security, which is the highest since its listing and represents a 9.9 per cent rise from the previous year. On the hospitality front, Mandarin Oriental Kuala Lumpur recorded a 21 per cent increase in revenue per available room (RevPAR) and a 25 per cent rise in banquet and catering revenue, solidifying its position as a market leader in RevPAR. KLCC Property acknowledged ongoing global uncertainties, including tariff impacts and geopolitical risks. However, it noted that no significant direct effects have been observed thus far. The company clarified that it has no direct involvement or timeline concerning the Bandar Malaysia project. "Bandar Malaysia is not under KLCCP or KLCC Reit. It is with KLCC Holdings Sdn Bhd, and they are currently in the process of putting up a new development plan," Annies said.
