“KLCCP Stapled Group Q2 net profit rose 4.9% to RM200m, lifted by retail and hotel gains. Declares 9.2 sen payout; six-month earnings up 6% to RM402m.”
Kuala Lumpur, 28th August 2025, 01.05pm – KLCCP Stapled Group reported a 4.9% increase in second-quarter net profit to RM200.45 million for the period ended June 30, 2025 (2QFY2025), boosted by stronger performance in its retail and hotel divisions.
Earnings per stapled security rose to 11.1 sen, compared with 10.58 sen a year earlier, according to the group’s stock exchange filing on Wednesday.
Quarterly revenue edged down 0.7% year-on-year to RM410.25 million, mainly due to softer contributions from management services and retail. Still, profitability improved, with gross and operating margins both rising to 63.9%, while operating expenses fell 3.7% to RM148.16 million. Financing costs also declined 3.3% to RM44.14 million.
Segment performance
- Retail: The largest revenue driver at RM137.92 million, with pre-tax profit up 1.4% to RM109.51 million, supported by higher base rents and stronger occupancy at Menara 3.
- Hotel: Swung to a pre-tax profit of RM0.83 million, reversing a RM1.36 million loss last year, after the Mandarin Oriental Kuala Lumpur completed ballroom refurbishments.
- Management services: Pre-tax profit rose to RM21.08 million, lifted by scheduled maintenance and higher car park revenue.
- Office: Stable at RM120.76 million, underpinned by long-term Triple Net Lease contracts for assets such as the Petronas Twin Towers.
Dividend and six-month results
The group declared a second interim dividend and income distribution of 9.2 sen per stapled security, payable Sept 30 with an ex-date of Sept 12.
For the first half of FY2025, net profit rose 6% to RM401.94 million, while earnings per stapled security improved to 22.26 sen. Revenue slipped marginally by 0.6% to RM817.17 million.
Outlook
KLCCP Stapled Group said the cancellation of the luxury goods tax and recovering tourist arrivals would support its retail and hospitality segments. The office portfolio remains resilient thanks to long-term leases.
“Acknowledging ongoing market challenges, we have proactively invested in asset enhancements to sharpen our competitive edge,” said CEO Datuk Mohd Salem Kailany. “We remain confident of delivering a resilient performance in the second half, backed by our solid portfolio and strategic initiatives.”
Shares of KLCCP Stapled Group closed two sen higher at RM8.64 on Wednesday, valuing the company at RM15.6 billion.
