KUALA LUMPUR (Feb 6): Hong Leong Investment Bank (HLIB) anticipates stronger earnings for KLCCP Stapled Group (KL:KLCC) in the financial year ending Dec 31, 2025 (FY2025), driven by full-year contributions from its full ownership of the Suria KLCC mall and a rebound in tourism.
According to HLIB, Malaysia’s Asean chairmanship in 2025 and promotions leading up to Visit Malaysia 2026 are expected to drive higher tourist arrivals, benefiting KLCCP’s hotel assets — currently operating at 58% occupancy — and boosting footfall at Suria KLCC.
Despite the positive outlook, the research house, which maintained its 'hold' call on KLCCP, flagged that these gains will be partially offset by higher financing cost from the Suria KLCC acquisition, capping its earnings growth.
In early 2024, KLCC Property Holdings Bhd had bought the remaining 40% equity interest in Suria KLCC Sdn Bhd, which owns and manages the mall, for RM1.95 billion.
For the fourth quarter ended Dec 31, 2024 (4QFY2024), KLCCP — comprising KLCC Property Holdings and KLCC Real Estate Investment Trust — reported a 12% increase in net profit to RM430.91 million, compared with RM384.59 million a year ago.
Meanwhile, revenue climbed 3.72% to RM459.1 million, up from RM442.63 million, supported by rental rate revisions and an improvement in occupancy levels to 99% from 97%.
The group declared a fourth interim dividend of 17.1 sen per stapled security, payable on Feb 28, bringing its total FY2024 dividend to 44.5 sen — a 9.9% increase from FY2023’s 40.5 sen and the highest payout since its listing in 2013.
KLCCP was trading at RM8.38 at the time of writing on Thursday, valuing the group at RM15.13 billion.